Andalusia, Catalonia, and Madrid are the regions of Spain that had the most construction projects in 2022. These provinces also have the highest population in the country and attract the largest number of tourists and expats moving to Spain for permanent residence. The number of inhabitants in Andalusia at the end of the year exceeded eight million; in Catalonia seven million; and in Madrid six million. As the population grows, so does the demand for housing. Property in Spain in these regions is becoming more and more popular among both Spaniards and foreign buyers.
Content:
- Spain’s construction sector performance in 2022
- Property prices in Spain by region
- Catalonia: the region’s appeal, property prices
- Andalusia: the region’s uniqueness, property prices
- Madrid: positions in world rankings, property prices
- Number of real estate transactions in Spain over the year
- Market development forecast for 2023
- We will help you buy property in Spain
Spain’s construction sector performance in 2022
In 2022, the total construction volume in Spain increased by 5.5% compared to 2021. The segment of expensive projects with a budget of more than €1 million showed the biggest growth. Of the country’s total construction volume, three main regions accounted for the growth:
- Catalonia with 19.5% of the total number of construction projects, or 3653 projects;
- Andalusia with 16%, or 2,995 projects;
- Madrid with 11.7%, or 2,188 projects.
Property prices in Spain by region
At the end of last year, apartments in new buildings in Spain accounted for 20% of the properties offered for sale. The remaining 80% is made up by commercial real estate, housing on the secondary market, and land plots for residential and commercial construction. The last of these segments is gaining popularity among Spanish and foreign investors. At the end of 2022, a square meter of Spanish housing cost an average of €1,921.
This figure varies region by region:
- Madrid: €2,500/m2
- Catalonia: €2,300/m2
- Andalusia: €1,800/m2
Each of these popular regions has its own appealing aspects. The country’s capital, Madrid, offers an abundance of cultural and entertainment events, a big-city tempo, and many opportunities for employment. Andalusia and Catalonia boast a mild climate, beautiful beaches, well-developed infrastructure, great tourism and entertainment industries, and big work and business opportunities. Catalonia’s capital, Barcelona, is not only a major administrative and business center of the region but also one of the most visited cities in the world.
Catalonia: the region’s appeal, property prices
The administrative center of Catalonia, Barcelona, tops the list of Spain’s best cities. Barcelona’s advantages:
- a perfect balance between life in a business metropolis and life in a resort city;
- a high concentration of cultural and architectural heritage;
- a mild climate and relaxed atmosphere;
- a thriving community of expats from other countries.
Catalonia for foreigners
Representatives of about 179 nationalities live in Barcelona. From year to year, the city attracts more and more digital nomads, business people, and families with children arriving for temporary or permanent residence. Barcelona has repeatedly been ranked among the top immigrant-friendly cities in the world. Along with Madrid, Catalonia is the largest Spanish community in terms of GDP.
Property prices in Catalonia in 2022
Last year, Catalonia was listed as one of the regions in Spain that saw the smallest increase in property prices—less than 5%. The average prices for houses and apartments in Catalonia at the beginning of 2023 are as follows:
- apartments in Spain in the whole of Catalonia: from €90,000 per property;
- houses and townhouses: from €100,000;
- land plots: from €120,000.
Andalusia: the region’s uniqueness, property prices
Andalusia is a historically unique region. Its capital, Seville, is home to three UNESCO World Heritage Sites:
- Royal Alcázar;
- Seville Cathedral and the Giralda;
- General Archive of the Indies, which houses over 43,000 documents.
Buying property in Andalusia: advantages
If you want to buy property in a developed region in Spain, we recommend that you consider Andalusia. New under-construction buildings in this region are the best option for the buyer due to discounts and convenient installment payment plans offered by developers. Andalusia is attractive for investing in real estate due to the following parameters:
- Minimal tax burden. Along with Madrid, the region has the lowest local taxes in the country on the purchase of property, inheritance, and personal income.
- Low bank mortgage rates and favorable terms.
- The warmest climate across the whole of Europe. The combination of a resort lifestyle and a well-developed business sector, typical of the whole of Spain, is especially pronounced in Andalusia.
Apartments and houses in Andalusia: prices
The average prices for residential properties in the region at the beginning of 2023 are as follows:
- apartments: from €85,000 per residential unit;
- houses and townhouses: from €100,000;
- land plots: from €75,000.
Madrid: positions in world rankings, property prices
In 2022, Spain was once again recognized as one of the most attractive countries in Europe for investing in real estate. Its capital, Madrid, located in the heart of the Iberian Peninsula, ranks second on the list of the best cities in Spain after Barcelona. The consulting company PwC notes that Madrid, along with Barcelona, outperforms many European cities due to the more affordable cost of high-quality living.
Property prices in Madrid
- apartments: from €200,000;
- houses and townhouses: from €140,000;
- land plots: from €140,000.
Number of real estate transactions in Spain over the year
According to the latest housing market report published in Spain, in 2022, the number of real estate transactions in the country amounted to about 720,000. The number of mortgage loans exceeded 335,000. This is the best figure for the market in the last 15 years. In 2022, investors preferred to invest in commercial projects, in the residential sector, and in the buy-to-let housing sector.
Market development forecast for 2023
Investors are confident in the Spanish real estate market and optimistic about its development. This was announced by Antonio Sánchez Recio, partner in charge of the Construction, Real Estate and Services sector at the world’s leading consulting company PwC. The expert emphasized that the real estate industry is currently undergoing an integral transformation due to new technologies, organizational changes, focus on asset and customer management, and the incorporation of ESG aspects (i.e. environmental friendliness, social responsibility, and smart governance tools) into the strategy and business model of real estate companies.
Investment properties in Spain
Most experts believe that the growth in housing prices, characteristic of the past two years, will slow down significantly in 2023. Resale property prices will remain at 2022 levels. However, due to the rising costs of building materials and fuel, apartments in off-plan development projects in Spain will go up in price. In terms of investment, Catalonia, Andalusia, and Madrid, as locations with the most new developments, will remain the best options for investing in real estate to ensure a quick return. If funds allow, it will be profitable to buy an apartment in Barcelona or Madrid or buy a house in Spain, on the coast of Andalusia. Such a property can always be rented out for short or long periods, as well as resold at a higher price in a few years. With the same view in mind, you can consider villas in Spain.
We will help you buy property in Spain
Interested in housing or commercial properties in Spain? Contact us via the online chat or in the manner most convenient to you, and our English-speaking experts will tell you about the features of a specific region, advise you on current prices for local properties in dollars or euros, and help you pick an apartment, house, or commercial project that suits your demands.