The price of real estate, and especially the process and specifics of its formation, is often shrouded in mystery for many people. Some believe that developers and owners value properties based on intuition or subjective perception. In reality, pricing depends on clear rules.
In this article we will talk about 8 factors that affect the price of apartments in Spain.
Content:
Pricing Specifics
Several factors influence the cost of real estate in Spain, including location, infrastructure, neighborhood amenities, transportation access, and other important aspects, which we will discuss in detail.
Since no property exists in a vacuum and each buyer compares offers from different owners/developers, developers consider the prices of nearby competing projects when calculating their prices. The more individualized features and amenities a development offers, the higher the price of the apartments sold within it.
The readiness of the project is also crucial, especially for ongoing residential complexes. Depending on the stage of construction, the price may be higher or lower. Buying apartments in off-plan projects in Spain at the foundation stage is considered the most advantageous. If the project has already been completed and handed over, the prices of the apartments within it can increase by 25% compared to the initial stages of construction.
Key Pricing factors
Let's now discuss the most important aspects that influence the price of apartments in Spain.
Location
Whether you're buying or renting a property, location is the most important factor affecting price. The location determines the level of demand, the target market and the basic rental rate. Typically, properties in prestigious areas, such as near the beach or in the city center, are more expensive than average.
In other areas, the cost may be lower due to the presence of industrial facilities or other factors that reduce the comfort of the residents. The floor on which the apartment is located is also important. The higher the floor, the better the light and views, the less noise and consequently the higher the price. In Spain, apartments on the corner of a building with views on both sides are highly valued.
Even if you don't plan to live in the apartment yourself, it's important to choose a good location because tenants will consider the location first.
Population
Population density is closely related to supply and demand. In densely populated cities, such as Madrid and Barcelona, the prices of buying and renting are higher, while in smaller cities, such as Granada and Elche, housing is cheaper. As the population increases, the demand for buying and renting apartments in the city may increase. The difference in demand and rental prices is particularly noticeable during high and low tourist seasons.
Age of the Property
The age of the property and how well it is maintained also influence the price. Newer properties in popular areas with stable demand will command a higher rental or purchase amount. However, even older residential properties, if they are in good condition and located in a desirable area, can see their prices increase over the years in line with the overall increase in property values in the area.
Building Materials
The higher the quality of the materials used in construction, the higher the price of the finished home.
Environmental Certification
Properties built using green building technologies are energy efficient, environmentally friendly, and safe for both the environment and occupants. As a result, they generally have a higher market value.
Individual Features
The size of the housing, the number of bedrooms, the living area, and the total square footage play a critical role in pricing. An astute buyer should also consider the level of furnishings, the quality of fixtures and finishes, the color scheme, and the novelty or presence/absence of renovations. A fully furnished apartment ready for immediate occupancy will cost more than an unfurnished one.
Some buyers prefer properties in complexes that offer various amenities, such as:
- a gym;
- parking facilities;
- a swimming pool;
- barbecue areas;
- playgrounds, etc.
The availability of these amenities also drives up home prices and often affects the cost of annual maintenance and/or utilities.
Public Transportation and Infrastructure
Whether buyers plan to live in the property or rent it out, it is best to look for houses and apartments near public transportation stops.
Properties with good transport links to the city center or popular destinations will be in greater demand than those located in remote areas accessible only by private transport.
Major infrastructure projects, new transportation hubs, prominent nearby landmarks, and multi-functional complexes developed by well-known developers generally lead to an increase in property prices in the surrounding areas. Similarly, prices may decrease if major businesses or entertainment venues move away from a particular district, or if industrial facilities or noisy viaducts are built near residential neighborhoods.
Social Infrastructure
Depending on the buyer's lifestyle, it is important to consider proximity to parks, medical centers, schools, fitness centers, restaurants, supermarkets, pharmacies, clinics, etc.
Buyers always pay for convenience. The more social amenities within walking distance of a home, the higher the value of the property and the easier it is to find tenants.
We Can Help You Buy Real Estate in Spain!
Discover apartments in popular cities and regions of Spain at prices directly from developers in the catalog at Spain-Real.Estate! Browse through the properties on your own or seek assistance from our specialists. To receive prompt feedback from a manager, please leave a request.
