Real estate in Spain: what you can buy for $1 million in 2023

Real estate in Spain: what you can buy for $1 million in 2023

Spain is not only one of the popular travel destinations. Comfortable climatic conditions, developed economy, and high quality of life attract foreigners. Real estate in Spain is in demand for permanent residence and as an investment. Let’s review the state of the country’s real estate market and analyze the region’s pricing policy: what can you expect when planning to invest $1 million in the Spanish housing stock?


Spanish real estate market in 2022

The sales market developed cyclically. The peak occurred at the end of Q3 when the year-over-year growth in the number of transactions amounted to 6.9%. That was the highest figure in 2022: in total, 600,000 transactions were concluded throughout the year. This figure can be considered a record for Spain. Buyers prefer new residential properties, which account for most of the transactions. Apartments in Spain are purchased not only in cash but also with mortgage loans, which indicates an increased interest in local real estate.

How prices changed in 2022

As demand grows, the prices grow too. Analysts believe that in 2023, the growth rate of the cost per square meter will not be too high, but one cannot expect a decrease. In many respects, this is influenced by the shortage of new-build housing offers. The average cost per square meter is $2,055, and it is far from the upper limit.

The cost of housing in popular areas

The highest cost per square meter was observed in the following regions of Spain:

  • Balearic Islands – $3,965
  • Madrid – $3,340
  • Basque Country – $2,977.

The most affordable prices per square meter of housing stock remained in Castilla-La Mancha ($952) and Extremadura ($1,012). Looking at these figures, you can get an idea of the budget for a potential purchase, which directly depends on the region of location. One- or two-bedroom apartments in a residential complex in Spain can be bought for less than $1 million.

Real estate in Spain: what you can buy for $1 million in 2023

Spanish real estate market outlook

The year of 2023 has just begun, so it is too soon to talk about accurate forecasts. Analysts also have different opinions towards the future. Some believe that the increase in mortgage rates will only temporarily slow down the growth of sales, since the increase is not so critical. The shortage of apartments in new buildings in Spain will stimulate more interest in sales in this niche. Others say that as inflation stabilizes, prices may fall slightly. Given that Spanish property sellers are extremely reluctant to cut prices, this may cause a reduction in the number of registered transactions. However, only time will tell what will actually happen. There is one thing that is for sure: foreign housing stock remains the most promising investment for those who want to save money from inflation, since residential properties in Spain will always be in demand.

Real estate prices in Spain in 2023

Let’s take a look at a few examples of current listings within a $1 million budget, depending on the type of property and location:

  • A two-bedroom apartment in Palma de Mallorca is for sale at $1 million. The area of the apartment is 110 m2. The residential complex is located on the first line on the coast.
  • A two-bedroom apartment in Barcelona can be bought at a slightly higher price. The 101 m2 apartment costs $1.3 million.
  • A 182 m2 four-bedroom residence in Alicante can be purchased for $989,750.
  • A 450 m2 four-bedroom apartment in Marbella is for sale at $1 million.

Prices for villas in Spain directly depend on size. For example, $1 million can buy you a six-bedroom villa in Madrid. In other regions, you can find even cheaper houses.

The figures above are given with a $1 million budget in mind. However, you can find more affordable offers in Spain. For example, a 192 m2 house in Finestrat, Alicante, can be bought for $850,650. Meanwhile a 255 m2 villa in Lloret de Mar costs only $380,000. A similar amount can buy you a two-bedroom apartment in Barcelona. In Torrevieja, a two-bedroom apartment by the sea is for sale at $246,000.

To sum it all up, within $1 million, you can buy one, two or three apartments, and use the property not only for a permanent relocation, but also for generating rental yields.

Real estate in Spain: what you can buy for $1 million in 2023

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