Periodic reports on the Costa Dorada property market
This page offers data-driven reports on the Costa Dorada’s property market, consolidating key data from public sources to highlight the latest trends and developments. Illustrated with charts and infographics, these reports provide critical insights into the residential real estate market of the Costa Dorada, with a focus on flagship municipalities such as Tarragona, Salou, and Cambrils. These reports are written for foreign investors, property buyers, vendors, professionals, and journalists looking for insight into the Costa Dorada’s property market to help inform big decisions with important financial consequences.
Costa Dorada property market overview
The Costa Dorada (Costa Daurada in Catalan) is a popular destination for international property buyers looking for second homes, holiday properties, or investment opportunities. Renowned for its golden beaches, Mediterranean lifestyle, and rich historical heritage, the coast attracts a not insignificant share of Spain’s foreign property transactions. As one of the more important housing markets in Catalonia, a focused report on the Costa Dorada property market is invaluable for anyone with an interest in this region.
Located in Catalonia, the Costa Dorada offers a diverse range of housing options, from coastal villas to modern apartments in bustling towns. The market presents unique opportunities and challenges worth analysing. Key municipalities like Tarragona, Salou, and Cambrils are among the most sought-after areas for buyers and investors.
The reports cover a wide range of topics to provide a comprehensive understanding of the market, including:
- Home sales across the Costa Dorada
- Foreign buyers: market share, residency status, and second-home investments.
- New-build properties: sales, pricing trends, and index data.
- House prices: general trends and specific insights into flagship municipalities like Tarragona and Salou.
- Mortgage lending: base rates, borrowing costs, and their influence on the market.
- Housing starts and key factors affecting supply and demand.
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2025 H1
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2024 Full Year
The Costa Dorada housing market in 2024 demonstrated steady performance, supported by consistent sales activity, ongoing interest from both domestic and international buyers, and a resilient resale segment. While the new-build sector experienced a slight slowdown in annual transactions, long-term trends remained positive, with planning approvals pointing to continued development across key municipalities. Average property prices continued to rise, particularly in well-established coastal areas such as Salou, reflecting strong demand and limited inventory. Although higher interest rates impacted mortgage activity, signs of easing monetary policy towards the end of the year provided a more favourable outlook for buyers. This report presents an in-depth analysis of the Costa Dorada property market in 2024, highlighting key trends and data-driven insights across sales, prices, mortgages, and construction activity.
Sales performance
Home sales in Tarragona showed moderate overall growth in 2024. A total of 16,801 homes were sold across the province, an increase of 8% year-on-year (Fig. 1-1). Compared to the ten-year average, transaction volumes rose by 27%, with cumulative growth of 100% over the decade.
Sales involving foreign buyers reached 3,150—an increase of 2% from the previous year. This segment grew by 28% compared to the ten-year average and is up 90% over a ten-year horizon. Of these sales, 2,290 were made by expatriates living in Spain, while 860 involved foreign non-residents (FNR), typically purchasing second homes or investment properties (Fig. 1-2). Purchases by expats increased 2% year-on-year and have grown 150% over the past decade. FNR sales were largely stable, up only 0.5% from the prior year and 16% over ten years.
Despite rising volumes, the foreign market share declined slightly to 19% from 20% the previous year (Fig. 1-3), indicating that local buyers are currently growing at a faster pace.
New build home sales were soft, with 877 units sold during the year, down 3% year-on-year (Fig. 1-4). However, this figure remains 29% above the ten-year average and reflects a modest long-term gain of 9%.
Costa Dorada home sales
The Costa Dorada municipalities—a magnet for both domestic and international buyers—saw a total of 8,305 home sales, marking a 7% annual increase (Fig. 1-5). Compared to the ten-year average, activity in this subregion rose by 24%, with cumulative growth of 85% over the past ten years.
House price trends
The average home price in Tarragona in 2024 was €138,341 (Fig. 2-1), a year-on-year increase of 5%. By contrast, newly built properties posted an average price of €178,055, reflecting a 17% annual decline. This divergence raises some interesting questions about supply trends or changes in buyer preferences, particularly in new development types or locations.
Over a ten-year period, prices for all property types have risen more than for new builds. The price index for all property rose from 100 to 135.4, while the index for new builds only increased to 130.6 (Fig. 2-2). This suggests that resale properties outperformed new construction by nearly 5% over the decade—a trend possibly driven by limited new supply, higher demand for resale properties in established neighbourhoods, or discounts and incentives in the new-build segment.
On a five-year horizon, average property prices have increased by 35%, while new build prices rose by just 20%, underscoring the relative resilience of the resale market.
Salou case study
In Salou, one of Tarragona’s key coastal markets, the average asking price per square metre stood at €2,228.5 in 2024—up 9% year-on-year (Fig. 2-3). Over a five-year period, asking prices in Salou rose by 23%. The ten-year asking price index increased from 100 to 131.6, meaning listed prices have appreciated by more than 31% since 2014. This rise signals solid confidence among vendors, particularly in areas with strong tourism appeal.
Mortgage market
There were 7,329 new mortgages signed in Tarragona province in 2024 (Fig. 3-1), representing an 8% year-on-year decline. However, this figure remains 12% above the ten-year average and 68% higher than a decade ago, underlining the long-term recovery of the credit market.
The average Euribor rate during the year stood at 3.27% (Fig. 3-2)—down from 3.86% in 2023. Notably, this remains close to the highest level seen in the last decade, following a low of -0.49% in 2021. The decline signals a potential turning point in the European Central Bank’s (ECB) monetary policy, as inflation pressures begin to stabilise across the Eurozone. Market forecasts suggest a likely easing of rates in the near term, which could improve mortgage conditions and help restore lending activity.
Housing starts
Construction activity weakened in 2024. There were 1,015 housing starts based on planning approvals (Fig. 4-1), down 17% year-on-year. However, this figure remains 13% above the ten-year average and has increased by 88% over the last ten years, indicating a still-healthy long-term trend despite annual volatility.
The decline in 2024 may reflect tighter financing conditions, permitting delays, or developer caution amid shifting demand.
Summary
Key insights from Costa Dorada’s housing market in 2024:
- Home sales rose 8% year-on-year and are up 100% over the last decade.
- Foreign buyers accounted for 19% of all transactions but lost some market share.
- The resale market outperformed new builds both in pricing and sales growth.
- Asking prices in Salou rose 9%, with long-term appreciation of 31%.
- New mortgage volumes declined 8% as high Euribor levels impacted affordability.
- Housing starts fell by 17%, but long-term trends remain positive.
Conclusion
The Costa Dorada housing market in 2024 remained buoyant overall, supported by steady transaction volumes, solid demand from international and domestic buyers, and long-term price appreciation. However, the decline in mortgage activity and new housing starts signals a transitional phase marked by elevated borrowing costs and cautious new development.
Looking ahead, any downward adjustment in interest rates by the ECB would likely reinvigorate both demand and building activity. In the meantime, resale properties located in vibrant coastal areas like Costa Dorada and Salou are expected to remain attractive to both investors and lifestyle buyers.
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.
