Costa Cálida (Murcia) housing market report – H1 2025

This report provides a data-driven overview of the property market in the Costa Cálida region of Murcia province, with a focus on key municipalities such as San Pedro, San Javier, Torre Pacheco, Los Alcázares, Mazarrón, and Águilas. Based on official data sources, it covers sales, prices, mortgage lending, and construction activity in the first half of 2025. These insights help local and international market participants understand recent performance and long-term trends.

Sales performance

There were 14,706 home sales in Murcia province during the first half of 2025 (Fig. 1-1), representing a year-on-year increase of 12%. Compared to the ten-year average, this was a rise of 54%, and over the decade, sales volumes have more than doubled, up by 153%.

Foreign demand continues to contribute meaningfully to the market. There were 3,808 purchases by foreign buyers in the period, up 4% year-on-year. This segment has grown 52% compared to the ten-year average and 166% over the last decade. By residency status (Fig. 1-2):

  • 1,717 homes were bought by foreigners living in Spain (expats), up 11% year-on-year
  • 2,091 homes were bought by foreign non-residents (FNRs), down 2% year-on-year 

Over ten years, expat purchases have increased by 233%, while FNR purchases are up 129%. Despite this growth, the market share of foreign buyers slipped to 26.5%, down from 28.8% in the same period last year (Fig. 1-3).

Sales of new-build homes rose to 1,214 transactions, up 8% year-on-year (Fig. 1-4). This marks a 50% increase compared to the ten-year average and 81% over the decade.

Zooming in on the Costa Cálida, there were 5,193 home sales in the municipalities of San Pedro, San Javier, Torre Pacheco, Los Alcázares, Mazarrón, and Águilas (Fig. 1-5). This represents a 9% increase year-on-year, 40% above the ten-year average, and 94% higher than a decade ago, indicating steady long-term growth in this coastal submarket.

Prices

According to the Housing Ministry, the average price of homes sold in Murcia province during H1 2025 was €128,705 (Fig. 2-1), up 11% year-on-year. The average price of new-build property stood at €214,715, marking a 12% increase over the same period.

Over the past ten years, resale prices have risen by 12%, whereas new-build prices have surged by 79% (Fig. 2-2). This widening gap reflects stronger demand and higher inflationary pressures in the new-home segment, driven by construction costs, land constraints, and limited supply in high-demand areas.

In the Costa Cálida municipality of Los Alcázares (used as an example for the region), asking prices have climbed sharply. From €2,573/m² in 2015 to €6,790/m² in 2025, this represents a ten-year increase of 164% and a five-year gain of 59% (Fig. 2-3). This sustained appreciation underlines the growing appeal of Los Alcázares among foreign buyers and the strength of demand along this stretch of coastline.

Mortgage lending

Murcia province recorded 5,848 new mortgages in the first half of 2025 (Fig. 3-1), an increase of 24% compared to the same period last year. Lending volumes were also 58% higher than the ten-year average and up 157% over the decade, demonstrating an active credit market supporting transactions.

The average Euribor rate during the period was 2.27% (Fig. 3-2), down from the recent peak of 3.69% in 2023 and well above the historical low of -0.49% in 2021. This places current rates firmly below recent highs but still above the ultra-low levels seen earlier in the decade. The decline reflects a shift in ECB monetary policy as inflation pressures eased, with markets increasingly expecting further rate cuts later in 2025, which could help reduce borrowing costs and support housing demand.

Construction activity

There were 2,171 housing starts in Murcia province during H1 2025 (Fig. 4-1), up 37% year-on-year. Compared to the ten-year average, this represents a 105% increase, and over the decade, housing starts have risen by 487%. This sharp expansion in planning approvals points to strong developer confidence, supported by rising sales, higher prices, and sustained demand for new homes in coastal areas.

Outlook

The Costa Cálida continues to strengthen its position as an attractive market for both domestic and foreign buyers, with solid sales growth, rising prices, and a clear recovery in construction activity. Although the foreign buyer share has eased slightly, overall demand remains robust. With interest rates trending lower, new-build supply increasing, and strong price momentum in municipalities such as Los Alcázares, the outlook for the second half of 2025 remains positive, provided broader economic conditions remain supportive.

Previous reports

The Costa Cálida’s housing market performance in 2024

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.