Get the best investment in Costa del Sol
Marbella is the ultimate representation of the spiralling housing market prices in the South of Spain, having registered the highest increase among all large Spanish municipalities in the last year. According to data compiled by the Idealista property portal, prices have increased by 19.9%, which equates to an all-time high average cost of 4,121 euros per square metre.
Mijas and Fuengirola, two other towns in Malaga province, have also seen prices rise above 10%, reaching all-time highs of 14.2% and 12.1%, respectively. The capital, Malaga, has seen an 8% increase in prices between January 2022 and January 2023.
These increases are well above the national average year-on-year increase of 5.4%, as reported by Spain’s INE, the national Institute of statistics body.
Other provincial capitals
Idealista’s report includes 16 provincial capitals that have registered year-on-year increases in house prices higher than inflation. Double-digit increases are led by Santa Cruz de Tenerife (18.7%), Alicante (13.2%), Valencia (11.4%), Guadalajara (11.3%), and Cuenca (10.8%).
Among those 16 capitals, Palma has the highest average price of 3,467 euros/m2, followed by Seville and Malaga, both reaching all-time highs of 2,365 euros per square metre.
Only drop in six cities
Only six cities registered a drop in average house prices year-on-year, including Palencia, Zamora, Ceuta, Jaén, León, and Ávila. Ávila and Jaén have some of the cheapest housing prices among these cities, with an average price of 1,078 and 1,083 euros/m2, respectively.
In the metropolitan area of Madrid, there was a 4.9% price increase, and nine different locations experienced increases above inflation. Alcorcón, Rivas-Vaciamadrid, Leganés, Las Rozas de Madrid, Coslada, Alcobendas, Alcalá de Henares, Torrejón de Ardoz, and Móstoles all saw notable increases.
In Barcelona, the increases in the metropolitan area were not as steep as those of Madrid, with Sant Cugat del Vallès and Mataró districts standing out above inflation. Hospitalet de Llobregat and Cornellà presented increases higher than the city of Barcelona itself, followed by Terrassa, Sabadell, Sant Boi de Llobregat, Santa Coloma de Gramanet, and Badalona.
Alicante and the most prominent towns in its surroundings, such as Elche, Torrevieja, and Orihuela, also saw notable increases, reaching 13.2%, 8.1%, 16.1%, and 18.5%, respectively. In Cádiz, the capital grew below the CPI, while nearby towns Jerez de la Frontera and Puerto de Santa María, Chiclana, and San Fernando saw growth at twice the rate of inflation, with 14.4%, 14%, 9.3%, and 7.7%, respectively.
Other cities with notable increases include Murcia (6.7%), where the nearby towns of San Pedro del Pinatar (16.7%) and Torre Pacheco (15.2%) experienced significant growth. In addition, the Balearic Islands saw an average price increase of 7.6%, with the island of Ibiza registering the highest increase at 15.6%.
Outlook 2023
Overall, it seems that the housing market in Spain is experiencing a significant surge in prices, with many cities and towns across the country seeing notable increases. While some areas are experiencing more significant growth than others, it’s clear that this is a trend that’s impacting much of the country.
Trends now after 2 months in 2023 predict that Spain has not reached the top level yet.
So if you are looking for a property investment Spain and especially buying in the south of Spain is the place to look
