Spanish property: the price race continues

Spain continues to attract investors and home buyers, and this is reflected in the rapid growth of property prices. According to data for the fourth quarter of 2024, compared to the same period in 2023, the cost of residential property in the country soared by an impressive 11.2%.

The average price per square metre reached €2,271 – a significant increase that shows continued strong demand. However, price growth is uneven across the country, with some regions showing even more impressive figures.

Valencia: This sunny city on the Mediterranean coast has shown one of the highest growth rates. Prices for second-hand homes here have jumped by 24%, reaching 2,836 euros per square meter. Such rapid growth is explained by a combination of factors: an attractive climate, developed infrastructure, affordable prices (relative to other large cities in Spain) and a constant influx of tourists and new residents.

Malaga: Another city on the Costa del Sol, Malaga, also shows impressive dynamics. Prices have increased by 21.5%, to 3,241 euros per square meter. Malaga’s popularity is due to its rich history, cultural attractions, beautiful beaches and mild climate.

Madrid: The capital of Spain, Madrid, is not far behind the other leaders. Prices for resale properties here increased by 20.2%, reaching an impressive 4,952 euros per square meter. High demand is due to a developed economy, a large number of jobs and the prestige of the capital's housing.

Alicante: This city on the Costa Blanca also attracts buyers with its beaches and low (compared to other cities on the coast) prices. However, the growth here is still noticeable - 18.2%, to 2,265 euros per square meter.

Barcelona: The largest city in Catalonia, Barcelona, ​​​​demonstrated a more moderate, but still significant price increase - 12.8%, to 4,700 euros per square meter. Although the growth rate is slower than in other cities, the high price per square meter confirms the continued interest in Barcelona real estate.

The high growth in Spanish property prices is due to a combination of factors:

• Increased demand: Spain remains an attractive place to live and invest, attracting both local and foreign buyers.
• Supply shortage: The number of offers on the market does not always meet the high demand.
• Tourism boom: The growth of tourism increases the demand for rental properties, which in turn affects purchase prices.

In conclusion, the Spanish real estate market continues to show strong growth and the forecasts for the near future remain optimistic. However, buyers should carefully analyze the market: contact Mercury Group experts for informed decisions, issues of residence permits, relocation and education in Spain.