Property prices in Spain
Russians are most often interested in new buildings in Spain with an average cost of up to 200 thousand euros. In the preferences of Russians in the first place — apartments in prestigious residential complexes, in the second — villas with swimming pools.
Our compatriots are particularly attracted to real estate on the shores of the Mediterranean sea: in Barcelona, on the Costa Blanca, the Costa Brava and the Costa del Sol, as well as in Madrid.
Overview of the regions
The Costa Blanca is the most affordable region of Spain for housing prices. A Studio or one-room apartment near the beach can be purchased from 70 thousand euros.
A small detached house on the Costa Blanca with three bedrooms 10-15 km from the sea for sale from 150 thousand euros. New villas 2-4 km from the sea cost from 250-300 thousand euros.
In the North of the Costa Blanca are the cities of Calpe, Denia, Moraira, Javea and Altea. Real estate in these cities is in demand among wealthy foreigners and pensioners who prefer a quiet holiday.
The South of the Costa Blanca is a resort area. The most popular cities in this area are Alicante, Torrevieja and Orihuela Costa. Thanks to active construction, housing prices are lower here. The region is chosen by buyers with a small budget.
Alicante in the South of the Costa Blanca is the most popular region for foreign buyers of real estate. In the province of Alicante, foreign home buyers accounted for 41.81% of the total in the second quarter of 2019.
Real estate in Alicante costs on average twice as much as in Madrid and Barcelona. You can buy an apartment in the city of Alicante for 1,500 euros/m2, according to data for February 2020.
Catalonia has traditionally attracted many property buyers from Russia. Housing here is more expensive than on the Costa Blanca. For 150 thousand euros, you can only buy a small apartment here.
House prices in Catalonia have increased by 40.5% over the past five years. This is the highest rate among Spanish regions after Madrid.
Barcelona is one of the most expensive and highly profitable markets in the country. You can buy a property in the city for an average of 4,100 euros/m2, according to data for February 2020.
An apartment in the center of Barcelona will cost more than 500 thousand euros. At the same time, the rental yield reaches 4-5% per year.
The Costa Brava is a coastal region that is located North of Barcelona and extends to the border with France. People buy housing here to live with their families and children. You can buy a property on this coast for an average of 2,500 euros/m2.
In Girona, a city on the Costa Brava, the average property price increased by 10% in the year to February 2020 to 2,250 euros / m2.
Madrid offers the most expensive residential property in Spain. Its average price reaches 235 thousand euros, which is 56% more expensive than the national average.
Real estate prices in Madrid have increased by 50% in five years. This is the strongest growth among all regions of Spain.
An apartment in Madrid costs an average of 4,400 euros/m2. You can buy a typical apartment in the city center with an area of 120 sq. m. for 550 thousand euros.
Marbella is a fashionable Mediterranean resort on the Costa del Sol. In December 2019, the average cost of housing in Marbella reached almost 3,000 euros/m2, exceeding pre-crisis indicators. This is 8.7% higher than in the previous year.
In the Canary Islands, you can buy a house for an average of 1,900 euros/m2, according to data for February 2020. After the crisis, the local real estate market began to recover quickly. However, the average cost of homes remains 30% below the 2008 peak.
In the South of Tenerife, luxury housing is rapidly becoming more expensive. You can buy a premium Villa here from 1.5 to 8 million euros.
In the Balearic Islands, the average property price reaches 3,000 euros / m2 as of February 2020. Prices have increased by 4% over the past year.
From 1996 to 2007, the Spanish real estate market experienced a boom. In these years, housing in the country has risen in price by an average of 197%. Adjusted for inflation, the growth was 117%. In Catalonia, Andalusia and Valencia, prices soared by 250% or 155% when adjusted for inflation. Spain was one of the European countries with the highest rate of price growth.
From 2006 to the end of 2012, real estate in Spain fell in price by more than a third — by 34.6%. in 2006, the square meter cost an average of 2,892 euros (this was the apogee), and in 2012 — 1,891 euros.
The construction boom and subsequent crisis led to insufficient demand for real estate in Spain. This led to an oversupply in the market and a sharp drop in prices, especially on the Costa Blanca.
Spanish home prices fell by a total of 41.9% from the fourth quarter of 2007 to the third quarter of 2015. Adjusted for inflation, the drop was 46.8%.
Economic growth, low interest rates, affordable housing prices and an increase in the number of foreign investors helped restore the market.
From January 2015 to January 2020, real estate rose by 13.2% on average in Spain, the most expensive objects in Madrid-by 25.7%, Catalonia-18.5% and Andalusia-12.5%. A slight drop in prices was recorded in the regions of Asturias-by 6%, Extremadura-by 5.5% and Cantabria-by 4.8%.
Spanish real estate has risen in price by 3.4% over the year and costs an average of 1,752 euros/m2, according to data for February 2020. The real estate market has not yet returned to pre-crisis levels and it has potential for growth.