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PROPERTY SEARCH

Date Published: 11/11/2024

Spanish house prices reach all-time high

In October, property prices shot up in every region of Spain

The dream of owning a home in Spain just got a little further out of reach. According to the latest data, house prices across the country have reached an all-time high, with a staggering 9.6% increase in October compared to the same month last year.

Today, the average price per square metre stands at a whopping 2,209 euros, leaving many aspiring homeowners wondering how they'll ever save enough for a down payment.

A deeper dive into the numbers shows how daunting securing a home loan is even for those on fairly high salaries. To buy a modest 50-square-metre home, you'll need to save at least 33,135 euros, while a more spacious 80-square-metre property will require a staggering 53,016-euro deposit. And that's not even taking into account the additional 10% needed for associated costs, such as mortgage fees and taxes.

The situation is particularly challenging for young people, who are already struggling to make ends meet. Local governments are trying to help by offering public guarantees to finance the remaining 20% of the home's value, but even with this assistance, the savings requirements are still steep. For example, to buy an 80-square-metre home, younger people will need to save at least 17,672 euros, even with the government's help.

Where is the cheapest place in Spain to buy?

While prices are rising across the country, some regions are more affordable than others and there are still some deals to be had.

The top five most affordable communities at the moment are Castilla-La Mancha, Extremadura, Castilla y León, La Rioja and the ever-popular Region of Murcia, where the average price per square metre ranges from 937 to 1,342 euros.

In these regions, the savings requirements are significantly lower. For example, to buy that 80-square-metre home in Castilla-La Mancha, you'll need to save around 22,488 euros, while in Murcia, the required savings are around 32,208 euros.

On the other hand, the most expensive autonomous communities for new buyers are the Balearic Islands, Madrid, the Basque Country, the Canary Islands and Catalonia, where the average price per square metre ranges from 2,443 to 4,663 euros. In these regions, the savings requirements are eye-watering, with the Balearic Islands requiring a staggering 111,912 euros for an 80-square-metre home.

Therefore, between the most expensive autonomous community (Balearic Islands) and the cheapest (Castilla-La Mancha), there is a difference of almost 65,000 euros in the savings needed to buy a modestly-sized home.

With these daunting figures, it’s little wonder that tens of thousands of protesters filled the streets of Sevilla, Malaga and Cadiz over the weekend, demanding more affordable housing and a major crack-down on tourist accommodation licences.

In other news: Everything you need to know about the Horizontal Property Law in Spain and Community of Owners

Image: Freepik

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