At the moment, the purchase of housing in Spain is becoming a real test for buyers. In the last couple of years, after the grip in which COVID-19 has held the global economy since 2020 loosened, the Spanish real estate market has experienced a significant recovery. In 2022, it managed to reach the peak figures recorded in the market before the economic crisis of 2008.
It is possible to note many positive features from such a recovery, but everything has a downside. The growth process has led to an extraordinary rise in the price of housing in all Spanish markets. The same process overlapped with the emerging economic crisis: recession, inflation, rising interest rates, falling incomes of the population, rising consumer prices, energy prices and much more.
Spaniards themselves feel the problem the most and it is most severe in the largest cities of the country, primarily in Madrid and Barcelona, but also in almost all provincial capitals of Spain. Looking for alternative options that are more affordable, but do not compromise much with the needs, becomes an extremely important thing.
Is there such housing in large cities? Is it necessary to move towards the province in order to find something that meets the needs and capabilities? More on this later.
Cities with affordable residential real estate
In an effort to purchase housing for modest savings, and not requiring an urgent mortgage loan, you will inevitably have to leave the line of the largest cities in Spain. Even provincial capitals will require big compromises. The cheapest options of decent quality can be found in the so-called "Empty Spain".
The country has been suffering from the problem of population migration from the hinterland to the cities for decades, and even the trends of the pandemic could not significantly reverse the trend. But this is also a plus, since in these regions there is low competition in demand and sellers are more inclined to bargain. The Idealista real estate portal has created a list of settlements from the areas of "Empty Spain" with the cheapest offers. The portal's data is relevant for December 2022.
According to them, the best candidates for the search are the autonomous communities of Castilla-La Mancha and Andalusia. The price per square meter in these communities does not exceed 450 euros, which is a very good deal by the standards of Spain. In the already mentioned Madrid and Barcelona, you usually have to start with 3,900 euros.
In Andalusia, it is worth paying attention to the province of Cordoba and the cities of Belmes and Fuente de Ovejuna. Housing in them will cost an average of 353 euros per square meter. Moving south, you can find good accommodation in Puerto Serrano, in Cadiz. Here, the price per square meter will be, on average, 365 euros. In Castilla-La Mancha there are the cities of Almaden, Malagon (both are located in Ciudad Real) and El Carpio de Tahoe in Toledo. A square meter of residential real estate here costs less than 400 euros.