Regionally, the Spanish real estate market is heterogeneous, both in the number of offers on the market, the quality of real estate, and in prices. From autonomous community to autonomous community, from province to province — prices vary quite a lot. It is worth carefully studying the market before buying. Below is information about the cheapest regions of the country for buying real estate for those to whom price is a determining factor.
However, considering that the choice of new housing is one of the key factors in a person's life, it is worth paying attention to other factors besides price, including employment opportunities, geographical location, climate, language, culture and economy of the place of residence. But now to the prices and regions themselves.
It should be pointed out that prices for residential real estate in Spain, over the past six months, have increased by 4.4% in annual terms (data for the end of September 2022). Rental rates from July to September increased by 6.4% year-on-year, due to high prices for the purchase of housing and the migration of mass buyers to the rental sector.
The cheapest cities in Spain for buying or renting housing were Almunecar (Granada, 326,770 euros), El Puerto de Santa Maria (Cadiz, 321,890 euros) and Bilbao (Biscay, 308,034 euros). Not one of them showed an average level below 300,000 euros, according to the Idealista real estate portal, but this is still the lowest level in the country.
On the other side of the spectrum, among the most expensive cities in the Mediterranean, including the Balearic Islands, were Benahavis (Malaga, 1,866,900 euros), Calvia (Balearic Islands, 1,504,400 euros) and Marbella (Malaga, 1,308,000 euros). They have become the most expensive cities both for buying housing and for renting. On average, among the most expensive places in Spain, the average price for the purchase of residential real estate significantly exceeds the mark of 1.3 million euros.
In most areas of Spain, an active price increase is forecast until the end of 2022, and in some areas of the country the growth will continue in 2023. The key factors are the energy crisis, rising costs for the construction of new real estate.
Real estate brokerage Donpiso estimates that house prices will rise by 5% by the end of 2022 and by 3% in 2023. Despite the increasing drop in demand among the mass buyer, there is still a shortage of residential real estate on the market.