How expensive is housing in Spain compared to the rest of the world?

Deutsche Bank’s latest Mapping the World’s Prices 2025 report ranks 57 cities worldwide by the cost of living, including housing — and the findings for Spain make interesting reading.

Compared to the world’s priciest markets, Spanish cities still look reasonable in this year’s ranking. In Deutsche Bank’s index of housing costs per square metre, Madrid and Barcelona sit in the lower-middle of the global rankings, far behind outliers like Hong Kong, London, New York, and Singapore, where prices per m² are three to five times higher.

That said, the gap is closing. Barcelona now ranks just below Paris and Berlin, while Madrid is roughly on par with Lisbon and Milan — hardly “cheap” by European standards. Both cities have seen housing costs rise faster than wages, eroding their affordability advantage over the past decade.

Europe’s housing cost divide

The numbers reveal a stark north–south contrast in Europe. The most expensive housing markets cluster around London, Zurich, Amsterdam, and Paris, while Southern European cities like Madrid, Barcelona, and Lisbon form a second tier of still-costly but more attainable options. Eastern European capitals remain relatively affordable but are also catching up fast.

The data also highlight how Spain’s regional diversity defies easy categorisation: while Madrid and Barcelona edge toward mid-tier global pricing, other Spanish cities (Valencia, Seville, Málaga) fall well below the European average, explaining why Spain remains a magnet for foreign buyers chasing better value and lifestyle if they are prepared to stray from the beaten track.

When rent catches up with reality

Deutsche Bank’s rent-to-income ratios tell a similar story. Barcelona tenants spend about 43% of their net salary on rent, and Madrid residents around 40%, putting both above the European average and close to Paris. That makes Spain’s big cities expensive to live in, even if ownership costs are still lower than in Europe’s richest capitals.

Takeaway

Spanish housing isn’t cheap anymore — at least not in its globalised, internationally desirable cities. While still more affordable than London or Zurich, the cost gap is shrinking, and rising rents point to mounting pressure in both local and foreign demand segments. For anyone eyeing Spain for relocation or investment, the message is clear: the value play is moving further down the coast and into smaller regional cities.