Raisin, a platform that helps consumers get the best deal from their savings, conducted its own research of the residential real estate market in Spain to determine whether housing is available for an ordinary buyer. The research collected data on typical household spending in the current economic climate, average property prices in Spanish regions, the average salary of a potential buyer, and the speed of acquiring a home for an average buyer. All of this revealed some surprising information regarding the state of the Spanish market, including the best areas for purchasing residential real estate.
The results of the research show that the autonomous communities of Castilla-La Mancha and Asturias have been the only Spanish regions that can be called “abundant” in affordable housing. If the mortgage and all monthly expenses had been paid in advance, a typical Spanish household could save more than 500 euros per month in these regions. You may save up to 600 euros in Asturias. In other words, in Castilla-La Mancha and Asturias, respectively, mortgage payments typically take 38% and 40% of the family's monthly income. And this is the lowest result in the country.
Additionally, a property in Castilla-La Mancha usually costs around 94,900 euros, while the average net income is 36,000 euros, according to Raisin’s research. The number of years that citizens will have to save money for a down payment when purchasing real estate is 5.3 years under optimal conditions. And the monthly mortgage payment will be close to 342 euros.
The most expensive regions to buy a house
Raisin also included the most expensive regions to buy residential properties. Madrid (note: approx. 280,000 euros) and the Balearic Islands (note: approx. 255,000 euros) took the lead. In Madrid, the average household salary is 45,000, while in the archipelago, it is 38,000. The average buyer has almost no access to new housing in this area. It is also important to remember that a mortgage for a home purchase in these areas costs between 900 and 1,000 euros a month, and it will take a family between 43 and 48 years to pay it off in full.