Vélez-Málaga, Marbella, Benidorm, and Vigo lead the rally in housing prices in Q1 2024, in a market defined by strong demand and limited supply — with Elda the only town to buck the trend.
Spain’s property market continues its upward march, with housing prices surging in many coastal, central, and northwestern municipalities during the first quarter of 2024, according to the latest figures from appraisal company Tinsa. However, the growth is far from uniform — mirroring the fragmented nature of regional property markets across the country.
The overall national average for Q1 shows a 7.5% year-on-year increase, taking the average price of a Spanish home to €1,902 per square metre. But a deeper dive into the data reveals stark regional divergences, with prices accelerating rapidly in sought-after areas, particularly along the Mediterranean coast and in select northern cities.
From sun-soaked coastlines to bustling urban hubs
The strongest annual price growth was recorded in Vélez-Málaga (+17.6%), followed closely by Marbella (+15.9%), Benidorm (+15.8%), and Vigo in Galicia (+14.1%). These are not the usual suspects from Madrid or Barcelona, but regional hotspots with solid demand from both domestic and international buyers — especially those in search of second homes or investment properties.
Other notable climbers include San Cristóbal de La Laguna in Tenerife (+13.1%), Torrelavega in Cantabria (+12.8%), Roquetas de Mar in Almería (+12.0%), and Jerez de la Frontera and Sanlúcar de Barrameda in Cádiz, with gains of over 10%.
Only one municipality among the 80 tracked saw a decline in Q1: Elda, in Alicante, where housing prices slipped 2.8% to €862/m² — an outlier in an otherwise bullish market.
Price rises cluster in already pricey locales
Unsurprisingly, the sharpest price hikes are largely concentrated in areas that were already above-average in terms of cost per square metre. According to Tinsa, 61% of tracked municipalities now report average prices above the national 7.5% growth benchmark, with a particularly strong showing from towns in the greater metropolitan areas of Madrid and Barcelona.
Leading the charge in Madrid are Coslada and Móstoles (both +9.5%), San Fernando de Henares (+9.0%), Pozuelo de Alarcón (+8.7%), and Las Rozas (+8.3%). Barcelona’s satellite cities are not far behind, with Viladecans (+8.6%), Sant Just Desvern (+8.4%), Santa Coloma de Gramenet (+8.0%), and L’Hospitalet de Llobregat (+7.7%) all posting strong year-on-year gains.
Farther afield, Getxo in the Basque Country stands out with an average price of €3,023/m², bolstered by robust demand in the region’s upscale housing segment.
Wide range of price tags from León to Madrid
At the extremes of the pricing spectrum, buyers get vastly different bang for their buck. The most expensive square metre in Spain is found in Pozuelo de Alarcón, Madrid, at €4,072/m². Other affluent Madrid suburbs like Alcobendas (€3,831), Majadahonda (€3,711), and Las Rozas (€3,427) are also testing buyers’ financial limits.
Meanwhile, bargain hunters might be tempted by Ponferrada in León, where homes go for just €798/m² — indicating a more affordable but less in-demand market.
Mortgage strain intensifies in resort hotspots
The report also paints a sobering picture of housing affordability. The theoretical “financial strain” — the percentage of household income needed to service a mortgage — crosses into critical territory in several resort locations.
Eight municipalities now require more than 45% of an average household’s disposable income to buy a home, with Marbella topping the list at an eye-watering 76%, followed by Torrevieja (61%), Benidorm (60%), and Vélez-Málaga (54%).
A further 24 municipalities fall into the 35–45% bracket, breaching what is typically considered the upper limit of affordability. Many of these hotspots are driven by tourism and second-home purchases, which exert upward pressure on prices but do little to help local residents get a foot on the housing ladder.
Conclusion: a two-speed housing market
What’s becoming increasingly clear is that Spain’s housing market is developing strong local flavours. While some towns race ahead on booming demand, others tread water or fall behind, reflecting regional disparities in economic opportunity, population growth, and housing supply.
As long as supply shortage persists and demand remains high — particularly from foreign and second-home buyers — don’t expect Spain’s hot zones like Marbella, Benidorm, or Vélez-Málaga to cool off any time soon. But in overlooked corners like Elda or Ponferrada, buyers may still find space to breathe.
