Buying a house in Spain can be challenging, especially if you aren’t familiar with the local real estate market. Many factors can affect the price of residential properties, so it’s important to get accurate and up-to-date information.
As of 2023, the average price of a new house in Spain is about 249,400 EUR. In December 2022, the average price per square meter for a new home was 1,921 EUR. Overall, an average residential property costs about 150,750 EUR across all regions.
Unfortunately, some Spanish real estate agents can be somewhat reticent and uncommunicative. Reliable information can be hard to come by for foreign buyers. Here you will find useful data on the current Spanish property market from verified sources. Did you know that Spain is one of the easiest countries in Europe to buy a house?
Average house price in Spain in 2023
The average cost of a residential property (house or apartment) in Spain in 2022 was 150,750 EUR, according to the available data. The average price per square meter was 1,921 EUR across all regions and all types of homes.
According to the research by Fotocasa.es, a home in Spain will set you back about 2,046 EUR per square meter.
Prices have mostly settled after the 2007 financial crisis, which resulted in the collapse of the local housing market and the steep decline in property values.
The aforementioned crisis came on the heels of an extended period during which housing prices in the country increased considerably. When the bubble burst, the local real estate market entered a period of decline from which it is only recently starting to recover.
Current state of the local housing market in Spain
Property prices have since picked up across the board. The European Mortgage Federation (EMF) reported a significant recovery in housing prices, from a record low of 70.8 index points in 2014 to 110 index points in 2020.
Despite this recovery, the real estate market in Spain is still lagging behind its European neighbors. Although considerable progress has been made since the crisis, the country is still at the bottom of EMF’s current house pricing index, with Sweden topping the list at 160.6 points.
To give you an idea of the Spanish housing market, consider that a 119 square meter home cost an average of 200,000 EUR in 2016. In comparison, the same amount could only get you a 50 square meter house in France.
Renting vs homeownership in Spain
The housing market in Spain has always been prone to wide variances by factors such as changes in interest rates. This is partly why more and more would-be homeowners are opting to rent houses and apartments instead of purchasing them outright.
Given the current real estate conditions, renting might be a more feasible option than purchasing a home. Even now, more people are opting for rental properties than before the housing crisis occurred.
Factors affecting housing prices in Spain
As in most other countries, home purchase prices and rental rates can vary considerably depending on factors such as location, demand, and the current market state.
Some of the most significant factors that affect transaction costs in Spain are:
- The original purchase price of the property
- Whether it’s a new build or a resale
- Whether it will be purchased in cash or via a bank mortgage
In general, anyone looking to purchase residential property in Spain should set aside about 10% to 15% of the closing price for taxes and miscellaneous fees. This amount will be used to cover the following:
- Transfer taxes. Also known as “ITP”, these typically amount to 8% of the selling price of a resale property. The exception is in Costa Blanca, where the transfer tax is 10%.
- Notary fees. These cost 400 EUR to 900 EUR.
- Land registry fees. These are usually 50% of the notary fees.
- Lawyer fees. Expect to pay 1,000 EUR to 2,000 EUR.
- Valuation fees. These cost 350 EUR or more.
- Stamp duty. This is usually 1.5% of the cost of the mortgage deeds.
- Lender’s commission. This is usually equivalent to 1% of the capital loans if the house is purchased via a mortgage.
- VAT. For new builds, expect to pay 10% VAT or 4.5% for new houses in the Canary Islands.
- Stamp duty. This is equivalent to 1.5% of the purchase price of new builds.
Ongoing costs for Spanish properties
Homeowners in Spain are required to pay community fees which are known as “IBI”. Other ongoing costs include home insurance, maintenance, and utility fees.
Average house prices in Spain by city
Madrid and Barcelona are some of the most expensive places to buy a home in Spain. Prices are increasing year after year. For instance, Madrid’s houses cost 7% more just in 2019 compared to the previous year.
A Madrid household needs twice as much savings and income to buy a home compared to the household in Granada.
Besides, as in most countries, purchase prices for houses in Spain are generally higher for properties near the city centers. Murcia is one of the exceptions, with prices higher for properties on the outskirts of town.
In some communities, the differences between prices near the city center and those further away aren’t that wide. In Alicante, for example, houses close to the central area average 2,150 EUR per square meter. Further away, properties average 1,716 EUR.
In Santa Cruz de Tenerife, the average price for houses near the city center is 1,933 EUR per square meter and 1,540 EUR on the outskirts.
But in most Spanish cities, particularly the larger ones, there is quite a wide variance between house prices near the city center and further away.
For example, in San Sebastian, a house near the city center will set you back around 6,000 EUR per square meter. Look further away, and you might pay only 3,633 EUR.
In Las Palmas de Gran Canaria, prices near the center average 4,400 EUR per square meter versus 1,840 EUR further away.
|City||Price per m² in city centre (EUR)||Price per m² outside of centre (EUR)|
|Las Palmas de Gran Canaria||4,400.00||1,840.00|
|Palma de Mallorca||4,433.33||2,512.50|
|Santa Cruz de Tenerife||1,933.33||1,540.00|
Average house prices in Spain by region
The most expensive residential houses in Spain are in Catalonia, where prices average about 4,104 EUR per m², followed by Madrid, Basque Country, and the Balearic Islands.
In contrast, the lowest prices can be found in Murcia, Extremadura, and Castile-La Mancha, where houses average 1,299 EUR per m².
Independent valuation company TINSA reports that the average housing price in the country is about 1,470 EUR per square meter. The table below shows the average costs in specific regions:
|Region||Housing prices per m² (EUR)|
|Major cities and capitals||1,591|
|The Balearic and Canary Islands||1,511|
The most expensive region for housing in Spain
The region with the most expensive houses in Spain is San Sebastian. A resort town located on the shores of the Bay of Biscay, it’s part of the Basque mountain range.
Housing prices in San Sebastian average 3,383 EUR per square meter. The next most expensive region is Barcelona, where houses average 3,380 EUR per square meter.
The average price of houses in Madrid is 3,682 EUR per square meter. In Bilbao and Cadiz, homes cost an average of 2,219 EUR and 2,014 EUR, respectively.
In comparison, houses tend to be cheaper in the south of Spain, particularly in Costa del Sol. A Mediterranean resort town in Málaga province in Andalucía, its homes cost an average of 2,240 EUR per square meter.
The table below shows the average house prices in the other towns of Costa del Sol:
|Town||Housing prices per m² (EUR)|
|Mijas and Fuengirola||2,110|
|San Pedro and Cancelada||2,550|
|Torremolinos and Benalmadena||2,050|
|Estepona and Bahia Dorada||2,050|
Average house price in Barcelona
As of April 29, 2022, the average price of houses in Barcelona is 706,997 EUR. The price per square meter is about 2,898 EUR. This data was collected from the estimated 3,304 properties in the province.
The current average price of 2,898 EUR per square meter represents a decrease of 1.76% as compared to the average price per square meter on April 10, 2022.
The towns with the lowest prices in the province are Bages, where houses average 184,137 EUR, and Anoia, where the average is 203,913 EUR.
Here are the average prices of homes per square meter in specific districts in Barcelona:
|District||Price per m² (EUR)|
Below are the cheapest places to purchase houses in Barcelona, along with the average prices:
|Town||Average house prices (EUR)|
|Maresme – Costa Norte||741,633|
|Garraf – Costa Sur||515,793|
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