Thu. Sep 21st, 2023
    Finding a Home in Spain Becomes Increasingly Challenging as Prices Continue to Rise

    Finding a suitable place to live in Spain has become a challenge for many citizens due to the continuous increase in both rental and sale prices. In August, according to Idealista data, the average price of homes for sale rose by 7.2%, reaching €2,004 per square meter. This figure is only 5.3% below the historical peak.

    Idealista also highlights that for the first time, the rental price has reached €12 per square meter per month, marking a historical maximum. This is due to a 9.5% increase in rental prices recorded in August. Five Spanish cities, including San Sebastián, Madrid, Palma, Santa Cruz de Tenerife, and Málaga, share both the highest prices for homes for sale and rental properties.

    Málaga is the only city in Andalusia that is currently experiencing historically high prices for both rental and sale properties. In terms of sale prices, Málaga ranks fourth with the highest prices, ahead of Santa Cruz de Tenerife and behind San Sebastián, Madrid, and Palma, with a price of €2,594 per square meter. Furthermore, Málaga has experienced a 13.7% increase in prices over the last twelve months.

    Regarding rentals in Málaga, the price stands at €12.8 per square meter per month, representing a 20.2% increase in the past year. Málaga has seen the highest price increase compared to the other four cities mentioned by Idealista. However, it still falls behind Valencia and Alicante, which have also reached record-high rental prices, though not in sale prices.

    According to the real estate portal, one of the contributing factors to this situation is the lack of supply in relation to the existing demand in the sector.

    Sources: Data from Idealista.