Recent analyses reveal: Nearly half of Spanish property buyers are searching for homes under €210,000, yet in metropolises like Madrid, Barcelona, and Málaga, prices far exceed this threshold. High demand and falling interest rates are fueling the market, but the discrepancy between desired prices and reality is growing.
The Spanish real estate market continues to be dynamic, driven by robust demand and favorable mortgage rates. However, while many buyers are looking for affordable properties, especially houses under €210,000, prices in Spain’s major cities are significantly higher. A recent Idealista report highlights this trend, showing that the expectations of many prospective buyers often do not align with market realities in urban centers.
The €210,000 Price Cap: A Challenge in Spain’s Metropolises
According to Idealista data, almost half (approximately 45%) of the total demand for used homes in Spain focuses on price ranges between €120,000 and €210,000 (22.6%) and under €120,000 (22.2%). These figures underscore the desire of many buyers for affordable homeownership.
However, the average square meter price in sought-after cities like Madrid, Barcelona, Málaga, and Valencia is over €3,000. This makes it increasingly difficult to find properties within the preferred price ranges in these regions. For example, the average price for a 70-square-meter apartment in Málaga is around €239,890, in Valencia around €211,190, and in Barcelona even €342,650.
Regional Differences: Where Affordable Homes Can Still Be Found
The demand for more affordable homes (under €120,000) varies significantly across different provinces. Santa Cruz de Tenerife (66.3%), Castellón (60.2%), Girona (60.2%), Granada (59.2%), and Tarragona (57.9%) show the highest concentration here. Even in provinces with a more active real estate market like Alicante (53.7%), Málaga (41.6%), Valencia (29.6%), and Barcelona (25.5%), the search for more affordable properties exists, albeit with a lower share, as average prices are considerably higher in these areas.
The national average price per square meter is €2,391. Price increases are particularly concentrated in provincial capitals. Málaga reaches €3,427 per square meter, Valencia €3,017, and Barcelona €4,895. These figures significantly exceed their respective provincial averages.
The Situation in Madrid, Seville, and Zaragoza
In Madrid, demand shifts slightly upwards: 24.1% of buyers are looking for homes between €120,000 and €210,000. Given an average square meter price of around €5,573 in the capital, which puts a 70-square-meter apartment at an average of €390,000, €120,000 barely covers the cost of about 22 square meters. Demand in Madrid is fairly distributed between €120,000 and €480,000, with a significant proportion of buyers also willing to spend up to €300,000 (22.9%) or €480,000 (21.1%).
Similarly, in Seville and Zaragoza, the price range between €120,000 and €210,000 is gaining importance (26.1% and 29.4% of demand, respectively). Nevertheless, 41.3% and 36.9% of buyers in these provinces are looking for homes between €210,000 and €480,000. With average square meter prices of €2,644 in Seville and €2,045 in Zaragoza, these cities are comparatively more affordable than the three largest metropolises. A 70-square-meter apartment here costs an average of €185,080 and €143,150, respectively.
Luxury Segment: A Niche in Certain Regions
The search for properties over €480,000 constitutes only a small portion of the total demand. Provinces such as Ávila, Ciudad Real, Cuenca, Jaén, Soria, Teruel, and Zamora show hardly any supply in this segment. Guipúzcoa, Madrid, and Cantabria show the greatest interest here, although only slightly above 10% of demand. In the luxury segment over one million euros, interest is mainly concentrated in Barcelona, Madrid, and Valencia, where this property type accounts for between 3% and 3.6% of demand.
These breaking news on the real estate market underscore Spain’s continuing attractiveness as a place to live, but also the challenges arising from price developments in the most sought-after regions. The search for affordable homeownership remains a central issue for many buyers.
