Spain’s most expensive areas: where house prices are rising fastest
Pisos has presented a report on changes in the property market in Spain over the last ten years. According to the document, the country’s housing cost rose by 34% over the period. Despite the decline in purchasing power, expensive areas of Spain are attracting attention as a place to invest.
General market trends
In contrast to property values, wage levels in Spain have risen by around 24% in 10 years. In addition, housing costs continue to increase in response to rising interest rates and inflation.
The analysis revealed the following trends:
– a square metre of property cost €1.7 thousand in March 2014;
– in March 2024, the price was €2.2 thousand.
According to Ferran Font of Pisos, the increase in housing costs has been almost uniform throughout the country. However, the following areas have shown more dynamic growth:
– Madrid and its surroundings;
– Catalonia;
– Basque Country;
– Balearic Islands.
It is worth noting that the average salary in Spain is around €22.8 thousand per year. Over ten years, this figure has increased by 23.7%, 10% less than the increase in property values. Experts see this trend as a serious problem. Purchasing power is decreasing, and the prices of houses and flats continue to rise. Over the month, housing costs rose in 12 Spanish regions. The leader is Valencia, where prices rose by 1.7%. In Catalonia, Madrid and Andalusia, growth was just over 1%. Four Autonomous Communities saw prices fall but did not exceed 0.2%.
Overview of the most expensive regions in the country
Analysts say the Balearic Islands are the most expensive region in Spain. Here, a square metre of housing costs €4.3 thousand. Madrid comes second with €3.4 per square metre. In third place is Euskadi, where property costs around €3,000 per square metre. Conversely, a square metre is valued at around 2.6 thousand euros in the Canary Islands.
In terms of provinces, the following locations saw the most significant price increases during the month:
– Almeria market showed a price increase of 2.5%;
– Alicante saw a 1.6% rise in house prices;
– the increase in Valencia, Soria and Girona was 1.5%.
The Balearic Islands have long been the most expensive place in the country. Housing costs continue to rise rapidly, and investors are less interested in buying such properties for profit. On average, the country’s residential property profitability is around 5%. By comparison, the return on office property is almost 12%.