Discover Top Property Hotspots in Spain: Prices Soar in 2024

Explore top property hotspots in Spain as prices surge 7.5%. Learn how cities like Madrid and Barcelona are reshaping the real estate landscape.

In a rather eye-opening revelation from property portal Idealista, it appears that the average price for a second-hand home in Spain has taken quite the leap, soaring by a notable 7.5% year-on-year during the second quarter of 2024. The nationwide average now stands at a staggering €2,138 per square meter, marking a new pinnacle in the country’s real estate saga.

Leading the charge are seven provincial capitals: Madrid, Barcelona, Palma, Malaga, Cadiz, Valencia, and Las Palmas de Gran Canaria. These urban hotspots are not only witnessing record-high property prices but are also grappling with unprecedented long-term rental costs. Ironically, these cities have become the epicenters of ‘anti-tourism’ protests, where local activists are pointing fingers at the Airbnb phenomenon and affluent foreign buyers. They argue that these factors have contributed to a dramatic spike in property prices, leaving many locals in a financial lurch.

Between June 2023 and June 2024, the rental market in Spain experienced a staggering surge of 13.2%, reaching an average of €13.4 per square meter. A whopping 34 provincial capitals have now hit record rental prices. Malaga, in particular, has emerged as a standout, with rental costs averaging €14.5 per square meter per month, while prospective homebuyers are confronted with prices averaging €3,016 per square meter. This surge follows the city’s recent accolades as the best destination for digital nomads and expats, a title it earned after transforming into a trendy holiday hotspot.

Over the past year, Malaga has witnessed a remarkable property price increase of 19.9%, the fastest of any city in Spain. Meanwhile, Barcelona has claimed the title of the most expensive capital city for renting, with an eye-watering average of €22.1 per square meter per month. For those looking to buy, Barcelona also ranks third in terms of average property prices, having reached a record €4,430 per square meter in June.

Madrid, not to be outdone, boasts the second-highest rental costs in Spain at €19.8 per square meter per month, alongside the second-highest property prices at €4,514 per square meter. The rental market in Madrid has seen a colossal year-on-year increase of 17.9% as of June, while buying a home has become 12.4% more expensive. 

Valencia, however, has taken the crown for the fastest-growing rental costs, which have surged by an impressive 19% over the past year, averaging €14.1 per square meter. Meanwhile, buying a home in Valencia will set you back an average of 14.7% more than it did a year ago, now averaging €2,554 per square meter. 

In summary, the Spain real estate market is not just on the rise; it’s practically doing a victory lap, leaving many locals wondering if they’ll ever catch up.