Prices review for property purchase and rent in major cities of Spain

Increasingly popular type of remote work in Spain has led to changes in property demand, sparking a growing interest in houses outside the major capitals, as well as in cities around large cities, whose residents, in most cases, live between working in a big city and living in their own locality.

In this case, we will leave aside large urban areas (GAU) to focus on the next stage - small urban areas (PAU). This division of the country's territory was developed by the Ministry of Transport, Mobility and Urban Agenda in the latest Urban Areas of Spain 2020 report, published in March 2021. Thus, Spain is divided into two areas: large urban areas (GAU) and small urban areas (PAU), subdivided into two areas: cities with a population of 20,000 to 50,000 inhabitants and urban municipalities with a population of 5,000 to 20,000 inhabitants.

For those seeking to escape from the major urban centers, but not flee to the countryside, there is an intermediate option in these 124 municipalities, which account for 7.4% of the population. These more than 120 municipalities are located in 33 provinces, where, for example, Madrid is not featured, as most of its municipalities are either part of the GAU Madrid or directly become municipalities with less than 20,000 inhabitants.

If you are looking for a coastal place with a more pleasant climate, then you should focus on, for example, Vilagarsia de Aruza (Pontevedra), Ronda (Malaga), San Javier (Murcia) or island enclaves such as Mahon or Ciudadela in Menorca ( Balearic Islands), Teguise and Pajara in Las Palmas or Icod de los Vinos in Santa Cruz de Tenerife.

Prices range from 3,704 euros per sq. m. in the municipality of Sant Antoni de Portmany, on the island of Ibiza, and the most expensive in Spain, up to 598.6 euros per sq. m. in Karkaihente, in Valencia. The city in Ibiza with a population of just over 26,000 is adjacent to neighboring Alcudia in Mallorca, where the price is 2,886 euros per sq. m., and the municipality of Nerja in Malaga, with 2,874 euros per sq. m. In another eight settlements, the cost per square meter exceeds 2,000 euros, for example, in the capital of Menorca, Mondragone, Tias in Lanzarote or Conil de la Frontera in Cadiz.

There are other 60 settlements below 1,000 euros per square meter in addition to Karkaichente including such largest ones as Plasencia (Caceres), Alzira (Valencia), Lucena (Cordoba) or Ecija (Sevilla), which are home to more than 38,000 people.

Supply has decreased quite significantly on the rental market and therefore it is more difficult to establish an average rental price. In fact, 54 municipalities out of over 120 have a proposal capable of sustaining rental price progression over time.

And again Sant Antoni de Portmany tops the list of the most expensive rental rates with 16.7 euros per sq. m. per month, followed by the Canary cities of Tias in Lanzarote (10.5 euros per sq. m.) and La Oliva in Fuerteventura (10.4 euros per sq. m.). Alcudia in Mallorca has been added to the list of four cities with a population of 20,000 to 50,000, where rents are more than 10 euros per sq. m. per month. The islands and the coast have the highest prices.

On the other hand, Tomelloso (Ciudad Real) closes the list with 4.2 euros per sq. m. per month, followed by Alzira (4.4 euros per sq. m.) and Lucena (4.9 euros per sq. m.).