The average square meter price of new residential real estate in Spain was the highest in Catalonia and the Community of Madrid in 2024. In the second quarter of the year, both regions boasted home prices of over 4,000 euros per square meter. That was substantially higher than the average for the country, which amounted to 2,930 euros per square meter. Overall, house prices in Spain have been on the rise since 2016.

After a long period of steady increase in real estate prices in Spain, the market was hit by the global financial crisis of 2007, resulting in the burst of the Spanish property bubble. House prices have since picked up and in 2023, the average square meter price reached 2,809 euros - just slightly below 2008 levels. Though prices have risen across the whole country, some regions, such as the Balearic Islands, Catalonia, Madrid, and Andalusia, experienced faster growth than others. Additionally, the gap between newly built and existing home prices has widened. Spain’s real estate market behind others The property market has made great progress, but it is still far off the rest of its European counterparts, and it is positioned, in fact, at the bottom of the European list of the EMF’s house price index, which is led by Czechia and Portugal. Supply is a major factor influencing the price development. Many European countries suffer housing shortages due to sluggish construction activity, and Spain is no exception. In 2022, ranked among the countries with the lowest number of residential construction starts per 1,000 citizens in Europe. Buying vs renting As happens with many other countries, the affordability of buying a home and renting will differ considerably dependent on the area. In 2022, the average Spanish citizen needed between five and 18 years to purchase an average priced property in their region with their full salary, with Murcia and La Rioja being the most affordable regions. The house price to rent index shows that house price growth has been much faster than rental growth. That is good news for homeowners whose homes appreciate over time, but an issue for renters who are yet to purchase a property.

House prices in Spain have grown year-on-year since 2016 and 2023, increasing by almost 500 euros per square meter. In October 2023, the average house price per square meter reached 2,016 euros - almost as high as in 2007 before the global financial crisis hit and the market plummeted.

House prices in Spain have risen year-on-year since 2014. The house price index measures the development of house prices, with 2015 chosen as a base year when the index value was 100. Between 2021 and 2023, the house price index in Spain rose by eight percent for new housing and 3.2 percent for existing housing. Overall, newly built housing has appreciated more than existing homes.

The average square meter price of residential real estate in the Balearic Islands was higher than in any other region in Spain in October 2023. At over 4,000 euros per square meter, house prices in the Balearic Islands were about twice higher than the national average. In Spain, the majority of households live in an owner-occupied home.

The Report Covers Residential Real Estate Market in Spain and is Segmented by Type (Villas and Landed Houses, Apartments, and Condominiums) and Key Cities (Madrid, Catalonia, Valencia, Barcelona, and Malanga, Among Others). The Report Offers Market Sizes and Forecasts in Value (USD Billion) for all the Above Segments.

Spain Avg Housing Price: Free Market: More than 5 Years Old: Las Palmas de Gran Canaria data was reported at 1,447.900 EUR/sq m in Mar 2018. This records an increase from the previous number of 1,418.700 EUR/sq m for Dec 2017. Spain Avg Housing Price: Free Market: More than 5 Years Old: Las Palmas de Gran Canaria data is updated quarterly, averaging 1,407.100 EUR/sq m from Mar 2010 (Median) to Mar 2018, with 33 observations. The data reached an all-time high of 1,717.600 EUR/sq m in Dec 2010 and a record low of 1,308.300 EUR/sq m in Mar 2016. Spain Avg Housing Price: Free Market: More than 5 Years Old: Las Palmas de Gran Canaria data remains active status in CEIC and is reported by Ministry of Public Works. The data is categorized under Global Database’s Spain – Table ES.P003: Housing Prices: Free Market: by Region and Major City.

Cádiz had the highest average house price among the different coastal cities in Andalusia, reaching close to 2,800 euros per square meter in December 2023. In contrast, Hueva had the most affordable prices, at 1,300 euros per square meter.

The central district was the most expensive district for housing in Seville, Spain in 2023. The average square meter price cost on average 3,357 euros in December that year, which about 1,000 euros per square above the average price in Seville. At the other end of the spectrum was Torreblanca, where housing was the most expensive at 679 euros per square meter.

Barcelona was the most expensive city to buy residential real estate in the Spanish autonomous community of Catalonia in October 2023. The square meter price of residential properties in Barcelona stood at 4,150 euros in that month, which was substantially higher than the average for the country or the region. Homeownership is important in Spain, with the majority of households living in an owner-occupied home.

Located in the Region of Valencia, the province of Castellon had the lowest property prices of all Spanish coastal areas, with an average price of 1,000 euros per square meter as of the first quarter of 2022. Castellon was also the Valencian province with the lowest average price of urban land. Also on the Mediterranean coast of Spain, Almeria ranked second on the list, with an average price per square meter of 1,100 euros, followed by another Valencian province, Valencia, which featured an average property price of just over 1,200 euros.

The other side of the coin: the most expensive coastal areas

Out of the four main islands that comprise the Balearic province, two are listed as the most expensive coastal areas of Spain. Ibiza and Formentera’s coasts ranked as the least affordable coasts in terms of property prices, with their average price per square meter amounting to nearly 4,000 euros. The Basque province of Gipuzkoa was the second most expensive coastal area.

Spain: the rebirth of a broken property market

After a long period of time in which Spain’s real estate prices increased sharply, the market was hit by the global financial crisis of 2007, making the Spanish property bubble collapse and damaging home value. It can be seen that real estate prices in Spain initiated a solid recovery in 2015, after the house price index fell to 96.27 index points in 2013. The property market has made great progress, but it is still far off the rest of its European counterparts, and it is positioned, in fact, at the bottom of the European list of the EMF’s house price index.

The house price index (HPI) in Spain has increased steadily since 2013, reaching a 10-year record value in 2023. In that year, the HPI reached a value of 167.33 index points for newly built and 144.19 index points for existing homes, meaning that house prices for new construction have risen faster than for existing homes. An index value of 160 suggests that house prices have risen by 60 percent since 2015 - the base year of the index. Catalonia, the Balearic Islands and Madrid were the Spanish regions where prices of both new and existing housing have risen the most in recent years.

The average apartment price in Spain in the first quarter of 2024 was the highest in Madrid, followed by Barcelona. On average, apartments in Barcelona cost 4,770 euros per square meter. The price of an apartment in the Andalusian city of Seville was significantly less, with an average cost of 2,270 euros per square meter.

The house price to income ratio index in Spain increased by about 15 index points between 2015 and the second quarter of 2024. The ratio measures the development of housing affordability and is calculated by dividing nominal house price by nominal disposable income per head, with 2015 set as a base year when the index amounted to 100. Spain's index score in the second quarter of 2024 amounted to 115.5, which means that house price growth has outpaced income growth by more than 15 percent since 2015. This was slightly higher than the Euro area 17 average.

Cadiz was the most expensive province for buying a house in the Spanish autonomous community of Andalusia in October 2023, followed by Malaga and Seville. In Cadiz, the average square meter price of residential real estate stood at about 2,800 euros - higher than the average for the country.

The house price to rent ratio in Spain has increased quarter-on-quarter since 2015, with the third quarter of 2024 seeing the highest index value. In that quarter, the index reached 145.4 index points, up from 137.4 index points in the same period the year before. The house price to rent ratio is calculated by dividing the nominal house prices by rent prices, with 2015 chosen as a base year when the value was set to 100. A value of over 100 shows that house prices have risen at a faster pace than rents. In comparison, the OECD average house price index stood lower, indicating a higher housing affordability than in Spain.

Some of the 21 districts of Spain’s capital city are well far off the 2,800 euros per square meter that Spaniards had to pay on average to purchase a home in 2023. The Spanish capital is home to some of the wealthiest districts of Spain, such as the historic Salamanca district, which topped the list at almost 7,000 euros per square meter. Rents in SpainWhilst Madrid’s districts had the highest prices for residential real estate, the Spanish capital was not the most expensive place to rent. Ibiza topped the list of the least affordable properties to rent, with households hypothetically requiring over 162 percent of their full income to pay off the rent. Located in the Andalusian province of Malaga, Marbella ranked second on the list, with over 156 percent of the full household income. Spain: the rebirth of a property marketAfter a long period of time in which Spain’s real estate prices increased sharply, the market was hit by the global financial crisis of 2007, making the Spanish property bubble collapse and damaging home value. It can be seen that real estate prices in Spain initiated a solid recovery in 2015, reaching 131.9 house price index points in 2021 from a lowest point of 96.27 index points recorded in 2013. The property market has made great progress, but it is still far off the rest of its European counterparts, and it is positioned, in fact, at the bottom of the European list of the EMF’s house price index, which is led by Czechia.

House prices in Spain have risen year-on-year since 2013. The house price index measures the development of house prices, with 2015 chosen as a base year when the index value was set to 100. In 2023, the index stood at 147.28 index points, meaning that since 2015, prices have risen by almost 42 percent. Overall, newly built homes saw appreciated faster than existing homes. Catalonia, the Balearic Islands and Madrid were the Spanish regions where prices of both new and existing housing have risen the most in recent years.

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The Balearic Islands region was the most expensive among Spain's single-provinces to buy a house in October 2023. The cost per square meter was over 4,000 during that period. In contrast, Murcia had the most affordable housing, at less than 1,200 euros per square meter. House prices in Spain have been on an upward trend since 2016, when they plummeted because of the financial crisis.