Spanish house prices in 2024

What’s on this page?

1. Regional focus: Malaga
2. Regional focus: Alicante
3. Regional focus: Valencia
4. The cheapest property in Spain
5. Expert opinions and insights on the cost of housing in Spain
6. Impact of the new Law on housing in Spain
7. Is it worth investing in real estate in 2024?
8. Investment considerations for real estate in Spain
9. Tips for prospective buyers of real estate in Spain
10. Conclusion

Real estate in Spain continues to actively attract the attention of investors and homeowners themselves. For ten consecutive years, there has been a high demand for real estate in this enchanting country.

The demand is due to the fact that Spain offers a diverse selection of properties, each with its own unique charm. Every year, the number of new properties increases, and developers offer the most diverse types of housing. These are both city apartments for an active lifestyle and tranquil coastal villas for those looking for a quiet and luxurious vacation.

In 2023, real estate market analysts in Spain predicted a significant drop in prices. However, over the past 12 months, housing prices and demand for housing in Spain have increased significantly.

Interesting fact:

"House prices in 2023 increased by an average of 7% across Spain."
But significantly higher real estate prices were recorded in the Mediterranean regions. The increase in house prices in Spain in these regions was largely driven by international demand, as these regions were the most attractive for foreign buyers.

The following table shows how house prices in Spain grew in 2023.

What are the projections for house prices in Spain in 2024?

According to analysts' forecasts, the real estate market in Spain will remain stable in 2024. However, in the seaside regions, even in the first month of 2024, a small increase in the cost of housing is already recorded. Experts claim that this was the case in the previous year as well. But the growth, they say, corresponds to inflation.

• BBVA bank specialists predict that in 2024 real estate prices will increase by 3%. But they note that after discounting inflation, there will be a decrease of 0.6%.
• Scientists at the University of Barcelona have calculated that this year there will be a more noticeable drop in prices, in particular by 3% adjusted for inflation.
• Bankinter analysts quoted in El Mundo predict a 2% correction in property prices in Spain next year.
• However, the analysts of the WTG Spain portal note that the average cost of housing in Spain remains lower by more than 20% compared to the peak of housing sales in 2007-2008.

 
According to experts, house prices in Spain in 2024 will depend solely on what and where you are looking for housing. This year, price pressure is expected to increase in the most popular and sought-after locations, but in the rest of the country, market value will stabilize or even fall slightly.

In the table below, we offer you a price comparison and the difference in the average price per square meter for real estate in Spain, compared to the last three months of 2023.

Regional focus: Malaga

Malaga is a spa town in Spain that was founded in the 8th century BC and still has a lot to see. Malaga is located in the center of a bay surrounded by mountain ranges. Thanks to this, the climate here is as favorable as possible for recreation and life.

Since there is a large influx of tourists in the city, this provokes an increase in the cost of renting private housing. In the height of the season, even hotels cannot provide everyone with comfortable rooms. In the central parts of Málaga, where the historic districts and business centers are located, housing prices can be higher compared to the suburbs or outskirts of the city. Málaga attracts foreign investors and buyers, which can be the reason for higher prices, especially in high-end areas and on the coast.

In this province of Spain, as in many other regions of the country, there is a trend towards a certain increase in housing prices. Malaga is very popular among tourists and the stable economic environment contributes to this.

We offer you a comparison of house prices in Malaga, Spain. We have selected the cost of two-bedroom new homes in the city and the province in general.

Málaga has a large tourist attraction, which can influence demand and property prices. With a large number of tourists visiting Málaga, the rental market can be of great value to investors. This province has a fairly developed infrastructure, such as transport, shops and educational institutions, which also affects house prices in Malaga, Spain.

Regional focus: Alicante

Alicante is the center of the famous resort tourist area of the Costa Blanca coast. In Alicante, a developed modern urban infrastructure and a historic center are harmoniously combined with wonderful old buildings. In the streets there is an active urban business environment, sights of many historical eras and five beautiful beaches. Alicante has regular rail, air and road connections. All this attracts tourists and investors from all over the world.

Alicante - this region is very attractive to people from all over the world. This is a place that is chosen both for recreation and for permanent residence. The real estate market in Alicante is interesting due to the variety of properties, including apartments, villas, and townhouses. And this can affect the price ranges of different types of real estate.

The overall affordability of housing compared to other regions of Spain can make Alicante attractive to buyers and investors. The determining factor is that the housing here is near the sea or with a sea view.

We offer you a comparison of house prices in Alicante, Spain. We have selected the cost of two-bedroom new homes in the city and the province in general.

Tourism in Alicante can affect short-term rental demand and prices during seasonal periods. This region has a high level of economic activity and employment, which determines the solvency of tenants. During 2023, house prices in Alicante, Spain, increased by 15% compared to other regions of the country. Which means that this region is becoming more and more popular, and developers are offering more and more new and interesting types of housing.

Regional focus: Valencia

Valencia is a large city in Spain, third in size after Madrid and Barcelona. It is located on the shores of the Mediterranean Sea, has a rich history and a special charm. The climate here is very warm and mild. The city is known for its landmarks and beautiful nature. The beach area offers various opportunities for relaxation and comfortable places.

Buying property in Valencia is a profitable investment option, as this place is always popular with investors and renters. Some tenants are students from many countries of the world who came here to get a high-quality education.

We offer you a comparison of house prices in Valencia, Spain. We have selected the cost of two-bedroom new homes in the city and the province in general.

House prices in Valencia, Spain, are much lower than in Barcelona or Madrid, although the quality of life is practically the same. Moreover, the hot climate reduces heating costs. New buildings in Valencia are the most popular type of housing. Housing in Valencia is built in compliance with advanced technologies.

The cheapest property in Spain

We analyzed the real estate market throughout Spain and found for you the cities where housing costs are at record low prices.
 
TOP-5 cheapest provinces in Spain for buying real estate

Expert opinions and insights on the cost of housing in Spain

According to the Real Estate Employers'​ Federation, in some regions of Spain, prices are too high and must be reduced by at least 10% for the population to be able to afford them. But will this significant drop actually occur over the next 12 months?

Laura Martinez, representative of mortgage comparison website iAhorro, said in an interview with Ideal that the market has started to stabilize and everything indicates that this will be the trend in the coming months.

"Inflation is under control, and the European Central Bank should not raise interest rates further, so prices may drop soon," said Laura Martinez.

However, not everyone agrees that prices will stabilize or fall. Ferran Font, head of research at Pisos.com, believes that prices will continue to rise in 2024. But this price increase will not be as sharp as in 2023, as property prices will only increase by about 1-2%.

"There will be no significant falls, especially given that rates are stagnant," said Ferran Font.

Impact of the new Law on housing in Spain

At the beginning of 2023, the Spanish government presented a new Housing Law. In the law, apparently, everything is planned to ease the rental crisis in the country and increase the number of rental housing for Spanish citizens.

For example, owners of empty real estate who do not rent out housing without valid reasons for two years will face fines. If real estate has been without rent for more than two years, according to the Law, the owners will be subject to an increase in the annual municipal real estate tax (IBI) in the range of 50-150% of its amount. At the same time, the maximum rate applies to individuals or legal entities who own two or more unoccupied properties in the same location.

So far in practice, this Law has created even more problems for tenants than it has solved the problem of lack of supply and price increases. This is partly due to the fact that the real estate market in Spain has changed. There have been more permanent housing rentals than seasonal rentals, as was the case before. And the law is more aimed at reducing restrictions for seasonal rentals.

Is it worth investing in real estate in 2024?

Demand for housing in Spain remains very high. So, in 2024, it is possible that the desire to buy an apartment, villa or apartment in the land of eternal sun, heat and sea will not decrease.

If you want to buy real estate in one of the main real estate markets of Spain, for example, on the coast of the Mediterranean Sea, on the Costa Blanca, then you should know that the prices here will continue to rise, analysts are convinced.

And this means only one thing - house prices in Spain (2024) will increase, so it is better to buy sooner than later.

Investment considerations for real estate in Spain

In Spain, there are no restrictions for foreigners when purchasing real estate. Both individuals and legal entities can buy real estate. For this, you only need to have a valid foreign passport and money. No other documents or permits are required. According to the laws of Spain, only the owner himself or his representative, who has a notarized power of attorney from the owner, has the right to sell real estate.

There are 48 airports in Spain, the largest are located in Madrid, Barcelona, Valencia, Alicante, Malaga, Seville and on the island of Ibiza, which makes it possible to get to Spain and from this country quickly and in fact to any corner of the world. This fact adds to a great tourism potential of the country, and will make your personal life, business or travel easier.

Tips for prospective buyers of real estate in Spain

Any property in Spain must be registered in the Registro de Propiedad - Property Registry. Here you can get information about who is the owner of the real estate, what is its cadastral value, the exact area, as well as about the owner's debts.

After choosing a property that suits you and making a decision to buy it, a sales contract is prepared, which stipulates the terms and method of payment. When concluding a contract of deposit (Contrato de arras), usually 10% of the total amount of the sale is paid.

It is also worth mentioning the property reservation agreement, upon conclusion of which 1-1.5% is paid in order to confirm the buyer's interest and "reserve" his right to purchase this property until the moment when the deposit agreement is signed. The remaining amount must be paid at the time of signing the main contract of sale (Escritura Publica), which the buyer and seller sign in the notary's office in the presence of a Spanish notary.

Payment must be documented. It is best if it is made by bank transfer to the seller's current account or by bank check. The buyer signs all documents directly with the real estate owner.

Conclusion

According to the trend of recent years, the cost of housing in Spain has been increasing significantly. Real estate on the Mediterranean coast is actually increasing in price by 15% per year and that can be quite a profitable investment. The rental market in Spain is also very developed and in fact the laws encourage landlords to make money renting out and thus provide housing to people who have come to this sunny country.

The opinions of experts and analysts differ greatly regarding the forecast of the real estate market for 2024, but it is already clear that only in January 2024, the cost of one square meter increased by 0.4% on average compared to December 2023. Therefore, it is worth buying real estate in Spain, because it is a reliable investment that will bring more and more money year after year.

At the same time, there are different housing prices in Spain. In order to profitably invest in real estate, we advise you to take a detailed look at the region in which you want to buy an apartment, villa or townhouse. And also turn to professionals who will expertly guide you through the selection of a property and help you deal with all notarial and banking issues. Such experts are the WTG Spain team. We are working for you!