Costa Cálida (Murcia) property market

2024 Full Year

The Costa Cálida (Murcia) housing market in 2024 showed strong and sustained resilience, underpinned by robust demand from both national and international buyers, particularly in the resale and coastal second-home segments. Transaction volumes in the region rose significantly compared to the previous year, and long-term growth trends remained firmly positive. The area continued to attract foreign buyers, especially non-residents seeking holiday homes and investments, although their overall share of the market experienced a slight dip. Property prices in the Costa Cálida continued to rise, and asking prices in key municipalities such as Los Alcázares reflected strong buyer interest. Meanwhile, the mortgage market expanded despite higher borrowing costs, and new-build activity remained solid, supported by long-term developer confidence. This report analyses the main indicators and trends that shaped the Costa Cálida property market throughout 2024.

Sales performance

The Murcia housing market recorded 26,820 home sales in 2024, representing a year-on-year (YoY) increase of 12% (Fig. 1-1). This result marks a 37% uplift compared to the ten-year average and a 110% increase over the past decade, highlighting solid long-term growth despite year-on-year stabilisation.

Foreign demand

Foreign demand remained a significant part of the local real estate landscape. The local real estate landscape continued to be shaped by strong interest from foreign buyersThe local real estate landscape continued to be shaped by strong interest from foreign buyers There were 7,427 transactions involving foreign buyers, an increase of 6% over the previous year. Compared to the ten-year average, sales to foreign buyers were up 42%, and 135% over the decade. Of these:

• 3,205 purchases were made by foreign residents (expats), up 3% YoY.
• 4,222 were by non-resident foreigners acquiring holiday homes or investments, up 7% YoY (Fig. 1-2).

Over ten years, expat purchases rose by a sizable 191%, while foreign non-resident (FNR) transactions increased 105%, reflecting Murcia’s growing importance as an international property destination.

Despite the strong foreign presence, the market share of foreign buyers declined slightly to 28% from 30% one year earlier (Fig. 1-3), suggesting greater activity among domestic buyers or a relative easing in international demand.

New-build sales reached 2,269 units, showing a 17% increase YoY (Fig. 1-4). This segment performed particularly well, exceeding the ten-year average by 62%, though the ten-year increase was a more moderate 37%.

Costa Cálida home sales

Sales in the popular coastal region of Costa Cálida totalled 9,751, up 14% YoY (Fig. 1-5). Compared to the ten-year average, this was a 39% increase, and 104% over the decade, confirming the area’s continued appeal.

House price trends

According to the Spanish Housing Ministry, the average sales price of all property types in Murcia during the year stood at €116,104 (Fig. 2-1), reflecting a modest annual increase of 7%. Prices for newly-built properties averaged €158,194 but fell by 18% compared to 2023, likely due to changes in mix, location, or buyer preferences.

Over the past decade, the property price index for all homes rose from 100 to 121.85, an increase of 22%, while the index for new homes surged by 42% to 141.56 (Fig. 2-2). This gap suggests that new-build property has appreciated significantly more than existing property in Murcia over the long term—perhaps due to improved standards in materials and amenities, or ongoing buyer demand for modern energy-efficient homes.

However, over the last five years, price growth has slowed. The index for all properties increased just 22%, while for new-builds it remained roughly flat (a negligible 0.1% increase), suggesting stabilisation or even downward pressure on new housing prices following earlier surges.

Asking prices in Los Alcázares

In the municipality of Los Alcázares—an area popular with foreign buyers—the average asking price in 2024 was €1,577 per square metre, showing a 16% YoY increase (Fig. 2-3). Over the past five years, asking prices in this area have climbed nearly 26%.

A ten-year index of asking prices in Los Alcázares rose to 133, which means asking prices in the area are now 33% higher than they were ten years ago, with steady growth reflecting sustained demand in this coastal destination.

Mortgage market

There were 9,873 new mortgages signed in Murcia in 2024, reflecting a strong annual increase of 24% (Fig. 3-1). Compared to the ten-year average, this was 31% higher, and the number of mortgages more than doubled over the past decade (up 107%).

The average Euribor—the reference rate for most Spanish mortgages—stood at 3.27% during the period (Fig. 3-2), down slightly (-15%) from the peak of 3.86% recorded in 2023. While this marks a retreat from last year’s highs, today’s Euribor is still well above its lowest level of -0.49% in 2021.

The recent downward movement reflects expectations of future easing in monetary policy by the European Central Bank (ECB) after a period of sharp interest rate increases aimed at controlling inflation. Markets now anticipate that interest rates may stabilise or decline modestly, which could provide relief for homebuyers relying on mortgage financing.

Housing starts

Murcia recorded 3,138 housing starts in 2024, based on planning approvals (Fig. 4-1). Although this figure marked a YoY decline of 16%, it was still 48% higher than the ten-year average and almost quadruple the number recorded ten years ago (up 386%).

This long-term increase in construction activity suggests developers are confident in future demand, though shorter-term constraints—such as high construction costs or increased financing costs—may have tempered new building applications this year.

Summary

Key highlights from the 2024 Costa Cálida (Murcia) housing market include:

• Home sales increased 12% YoY, with a decade-long gain of 110%.
• Foreign demand remained strong, with 28% of all sales involving international buyers.
• New-build transactions rose 17%, outpacing the broader market.
• Property prices grew more slowly overall, with new-build prices experiencing a notable YoY decline.
• Asking prices rose by 16% in Los Alcázares, with a 10-year increase of 33%.
• Mortgage activity surged 24%, but lending conditions remain sensitive to interest rate trends.
• Housing starts fell in the short term but are up significantly compared to ten years ago.

Conclusion

The Costa Cálida (Murcia) housing market in 2024 showed robust long-term growth, supported by international interest and strong domestic demand, especially in areas like Costa Cálida. While overall market activity remained healthy, some segments—particularly new-build prices and housing starts—show signs of cooling or adjustment after several years of growth.

With borrowing costs beginning to ease from recent highs and sustained interest in Spain’s coastal areas, the outlook for the Murcia market in 2025 remains positive, albeit with more moderate expectations for price growth and continued caution on the development side.

Disclaimer

These reports are prepared in good faith using publicly available data. While efforts are made to ensure accuracy, no guarantees are provided regarding the completeness, reliability, or suitability of the information for any purpose. Use of this information is at your own risk.