Buying real estate in Spain – is it too late to grab a bargain?
In Spain, the worldwide economic crisis which began in 2007/2008 led to many Spaniards and expats having their homes repossessed. As sad and unfortunate as this situation was, as a result of the crisis, even more than a decade later, you can still find some fabulous properties in Spain at knock-down prices.
Although property prices rose at an alarming rate in the years prior to the crisis, reaching unrealistic highs, property in Spain is now considerably cheaper than in the UK, although this will vary from one province to another. In most cases you will find a beautiful villa in its own grounds for the same price that you would pay for an end of terrace house in many UK areas, or a luxury apartment for the price of a very basic one-bedroom flat in the UK.
Of course, in the UK prices differ from north to south and from city centres to suburban districts, and the same applies in Spain.
Rents in Spain are much cheaper as well, and you can generally rent an apartment for a month for the price it would cost you for a week in the UK, again, this statement applies to most parts, but is not the case countrywide.
Average Property Prices in Spain
In Madrid, the average cost per square metre is around €2,400, with the average property price at a little over €500,000. However, in the less pricey areas like Sierra Oeste or Cuenca de Henares, properties can be bought for between €150,000 and €200,000.
Barcelona, the capital of Catalonia is a well-desired location for younger people looking to move as it avails a relatively high number of job and career opportunities for those who might still be learning the language. Property in Barcelona is in huge demand, and currently a source of contention causing friction between locals and foreigners as foreign investors and the tourists they rent to, are accused of outpricing locals out from their neighbourhoods. Properties cost an average 4,000 euros per square metre, with the average property costing €650,000. The areas with more economical properties are Ciutat Vella and Sants-Montjuic, where prices average €280,000–€320,000.
Famous in previous years as a millionaire’s playground, the average price per square metre in Marbella is €3,250, with property prices averaging at more than 700,000 euros. The lower priced properties can be found in La Duquesa and Sabinillas, at an average of €150,000 – €180,000.
In Valencia, property is much cheaper than Barcelona or Madrid, and €1,250 is the average price per square metre. Properties sell on average for €240,000. In cheaper areas, Navarres and Ribera Alta you can find properties averaging €100,000 to €160,000.
Javea, arguably the most desirable town for UK expats, with a foreign community that outnumbers local Spaniards, has an average cost per sq. metre of €2,425, with townhouses for sale in Javea selling at around 320,000€, and property in general selling at an average of €500,000. The lower priced areas include Beniarbeig and El Verger, where property can be found for an average of 100,000 euros.
Please note these prices are only offered to give you an idea of what is available and how the price of Spanish property can vary considerably (like in the UK and other countries) depending on the area.
These statistics may be helpful if you are prepared to buy, however sometimes would-be buyers prefer to rent to begin with, while they explore the area and can decide exactly where they would be happy living as a permanent base.