Property News from Spain

The Costa de Azahar, also known as the Orange Blossom Coast, is located in the province of Castellón. It is a stunning coastal region that boasts a diverse array of landscapes, ranging from rocky coves and secluded beaches to lush forests and citrus groves. Living in the Costa de Azahar is an experience that many people dream of, with its vibrant culture, breathtaking scenery, and relaxed way of life.

One of the most significant advantages of living in the Costa de Azahar is the climate. With an average of 320 days of sunshine per year, this region is perfect for those who love warm weather. The summers are hot and dry, with temperatures averaging around 30°C, while the winters are mild and comfortable. This climate is ideal for outdoor activities such as hiking, swimming, and cycling, making it a popular destination for adventure seekers and nature lovers alike.

In addition to the climate, the Costa de Azahar is famous for its stunning beaches. With over 120 kilometres of coastline, there are plenty of options for sunbathing, swimming, and water sports. Some of the most popular beaches include Playa del Norte in Castellón de la Plana, Playa del Moro in Alcossebre, and Playa de la Concha in Oropesa del Mar. Each of these beaches has its unique charm and character, and there is something to suit everyone's taste.

Aside from the beaches, the Costa de Azahar is also renowned for its gastronomy. This region is known for its fresh seafood, locally grown fruits and vegetables, and traditional rice dishes. Some of the most popular dishes include paella, arroz a banda, and fideuà. The local wine is also excellent, with many vineyards in the area producing high-quality wines.

The Costa de Azahar is a culturally rich region, with a history that dates back to ancient times. The area is home to many charming villages and towns, each with its unique architecture, traditions, and festivals. Some of the most famous festivals in the region include the Fiestas de la Magdalena in Castellón de la Plana, the Fiestas de San Juan in Peñíscola, and the Fiestas de la Virgen de la Salud in Algemesí. These festivals are an excellent opportunity to experience the local culture and traditions and are a highlight of living in the Costa de Azahar.

In terms of infrastructure, the Costa de Azahar is well-connected and has excellent transport links. The region is served by Castellón Airport, which offers domestic and international flights. There are also regular bus and train services that connect the towns and cities of the region. The healthcare system is also of a high standard, with modern hospitals and medical centres in each town.

In conclusion, living in the Costa de Azahar is a dream come true for many people. The region's stunning natural beauty, vibrant culture, and relaxed way of life make it an excellent place to call home. Whether you are looking for a peaceful retirement destination, a place to raise a family, or an exciting new adventure, the Costa de Azahar has something to offer everyone.

Foreigners are acquiring more real estate at a higher price. Nationalities such as the Dutch, the Ukrainians or the Americans are gaining prominence in the market.

Foreigners have returned strongly to the Spanish housing market after the pandemic. In 2022, home purchases have broken records and the average price per m2 of real estate has reached the highest level since there are records. In the luxury sector, foreign demand has even grown more than national demand.

During this year, the British, Germans and French have remained the leading foreign buyers, although other nationalities have gained prominence. For example, the Dutch, the Norwegian, the Irish and the Ukrainian, although for different reasons. Demand from the US and Latin America has also gained momentum, boosted by the strength of the dollar against the euro.

Among the most important news in recent months is also the implementation of the tax on large fortunes, a new tax that must be paid by taxpayers with assets of more than 3 million euros and that will also affect foreign non-residents, which could have consequences on the real estate market.

The notaries estimated 72,987 housing transactions in Spain were led by foreign buyers in the first half of the year, the highest figure since 2007. In addition, these operations represented 20.3% of the total registered in the country as a whole, equaling the record registered in the second half of 2015; and the average price that they have paid for the properties has marked maximums. A trend that continued in the third quarter. According to the College of Registrars, between June and September, foreigners purchased 26,728 homes in Spain, representing 15.92% of the total number of registered sales and a new record in the historical series of this body, both in volume and weight over the total operations. The figures show a clear and consolidated upward trend and, above all, respond to the notable strength of the home transfer market.

On the other hand, foreign customers are increasingly interested in the luxury segment. This is corroborated by a study by the specialized real estate agency Lucas Fox, which states that the growth of foreign demand for luxury housing was faster than that of the local one in the first half of the year, reaching a record market share of 14.7 % at the end of the first semester. The company affirms that demand has been diversifying throughout 2022 and insists that "in an international context of growing uncertainty, foreign buyers have shown their confidence in Spanish real estate as a lifestyle option and a solid investment ”.

Foreigners have paid the highest price in history to buy homes in Spain in 2022. This is shown by data from the General Council of Notaries, which put the average price paid by foreign buyers for each m2 of houses at 2,062 euros during the first semester of the year. The amount not only shows an increase of 10.6% year-on-year but also breaks the record for the series collected by notaries since 2007, in the midst of the real estate bubble.

The new maximum price has been driven mainly by the average price paid by non-resident foreigners for their homes (€2,522/m2, also a record, growing by 2.9% year-on-year), and which far exceeds that paid by residents (€1,622/m2, increasing by 8.2% compared to the first half of 2021) and nationals (€1,560/m2, with an increase of 5.2% year-on-year).

In the first half of the year, prices grew in year-on-year terms across the whole of Spain, with Extremadura at the top of the list, with a rise of 34.3%; followed by Asturias (27.5%), Murcia (19%), Madrid (16.6%), Aragon (16.1%), Valencian Community (13.6%), Canary Islands (13.1%), Cantabria (11%) and Catalonia (10.4%).

The foreigners who paid the highest amounts per m2 in the first half of the year were those from Denmark (€2,870/m2), the USA (€2,837/m2), Norway (€2,701/m2), Sweden (€2,701/m2 ), Germany (€2,657/m2) and Switzerland (€2,567/m2). Buyers from the Netherlands, France, Belgium, Italy and Ireland also exceeded the average price paid by foreigners as a whole (€2,062/m2). On the other hand, Moroccans (€694/m2), Romanians (€1,097/m2) and Ecuadorians (€1,198/m2) paid the lowest average prices.

British, German and French continue to be the most prominent nationalities in the market by volume of operations, although this year buyers from the Netherlands, Norway, Ireland, Ukraine, the US and Latin America have gained prominence, although for different reasons.

According to data from notaries, Dutch, Norwegian and Irish foreigners led the increase in home sales in Spain, with increases of more than 100% in all three cases. In other words, between January and June, they formalized more than double the number of transactions than in the same period of the previous year.

Experts attribute this rise to factors such as the promotion of teleworking, the good climate, good communications, the technological 'hubs' that are consolidating in Spain, housing prices that are comparatively lower than in other European countries and the energy crisis.

Another leading nationality in 2022 has been the Ukrainian who, coinciding with the outbreak of the war with Russia, has formalized the highest number of home sales in Spain in history. According to notaries, between January and June, citizens from Ukraine purchased 1,237 homes in Spain, 73% more than in the first half of 2021 and almost 60% above the registered average of the last 15 years (774 units).

The increase in demand has occurred both in the traditional housing market and in the luxury sector, while the three provinces that arouse the most interest are Alicante, Valencia and Barcelona.

Buyers and investors from the US and Latin America have also gained prominence in the market, who have wanted to take advantage of the weakness of the euro, which in 2022 has lost parity with the dollar, to buy properties at a discount.

On the other hand, the British, the nationality that has stood out the most throughout history in the Spanish market, is losing ground. In the third quarter, 9.3% of these customers came from the United Kingdom, the lowest figure since registrars collect data, and a far cry from the almost 24% they came to represent of sales to foreigners in 2015.

Experts affirm that the preferences of foreigners are large houses, with a terrace and pool, located mainly in coastal areas, to be used as a second residence in most cases. Although interest is also growing in taking advantage of longer seasons or stays and teleworking, beyond the classic factors such as good weather, air connectivity or the cost of living, which is lower than in their countries of origin.

By location, the Costa Blanca (Alicante), the Costa del Sol (Málaga), the Balearic Islands and the Canary Islands continue to be the areas where foreigners have a greater weight in the housing market. However, depending on nationality there is also interest in buying a home in municipalities located in provinces such as Barcelona and Valencia in the case of Germans; or Madrid and Girona in the case of the French. On the other hand, the autonomous cities of Ceuta and Melilla and Algeciras (Cádiz) have been the areas most in demand by buyers from Morocco. The British, for their part, have focused on the capitals Madrid and Barcelona.

A study of the leading real estate marketplace in southern Europe confirms that there is also interest from foreigners in towns with less than 5,000 inhabitants. In fact, in 22 towns the demand to buy housing from other countries is higher than the national demand. The most prominent is Fuente Obejuna (Córdoba), followed by Garcirrey and El Milano (both in Salamanca), Cala Ratjada (Mallorca), Laroya (Almería), Valle Gran Rey (La Gomera) and Cómpeta (Málaga). In some of these small municipalities, the price of housing is below 500 euros/m2, while in others it exceeds 1,700 euros/m2.

The General Council of Notaries has published the annual data on home sales and mortgages for 2022, which confirms the good year for the residential market in terms of operations, with almost 720,000 transactions, representing an increase of 6.1% year-on-year, and reaching maximums of 15. It is still 15% lower than when compared to 2007, but more than 90,000 houses have been sold in the Community of Madrid, the Valencian Community and, above all, Andalusia, which concentrates 20% of the total operations. The four autonomies account for 63.7% of the sales volume in 2022.

No region exceeds the data for total housing operations compared to 2007, except Madrid, barely 0.5% more, but adds fewer sales than in 2021, falling 1.1% year-on-year. Catalonia does improve by 2021 (5.5%), but it has fallen less than 600 transactions from the 2007 record (-0.5%).

Housing transactions increased in 14 autonomous regions compared to 2021, with the Canary Islands (26.9%) in the lead and its more than 31,000 operations, mainly due to the increase in operations on apartments, reaching more than 23,700 sales, but also chalets (21.3%), exceeding 7,500 sales for the first time in 15 years.

Along with the Canary Islands, two other autonomous regions linked to the tourism, second-home and international markets, such as the Balearic Islands and the Valencian Community, have also registered record sales of single-family homes, with more than 4,400 and 28,200 operations, respectively, even more than in 2007.

Despite the fact that in Madrid, home sales have fallen compared to 2021, the region had never registered so many operations on apartments, with more than 79,630, barely 0.2% more than the previous year, but in no other region have they exceeded the figures for 2021.

The Balearic Islands and Madrid hit the ceiling in the prices of homes sold in 2023. The average price of those sold transacted in 2023 increased by 7.2% in the country as a whole, to 1,615 euros/m2. However, it remains 9.8% below the 2007 price (1,790 euros/m2). But not in all communities this has happened.

Two regions with high demand in the residential market such as the Balearic Islands and Madrid have reached the maximum average price recorded in the last 15 years, with 3,200 euros/m2 and 2,657 euros/m2, respectively, the highest in Spain.

In fact, Madrid (12.2%) leads the price increases this 2022, exceeding double digits together with Murcia (11.0%), the Canary Islands (10.4%) and the Valencian Community (10.3%). The Balearic Islands grew by 7.2% year-on-year, but the average price of homes had never exceeded 3,000 euros/m2.

The rise in apartment-type properties in the Balearic Islands (10.9%) has indeed been one of the highest during 2022, only surpassed by Madrid (11.7%), to leave sales prices among the highest in the country, with 2,958 euros/m2 and 2,881 euros/m2, respectively, even surpassing 2007.

The Balearic Islands also reached a ceiling in the prices of single-family homes (3,551 euros/m2) after growing 4.2% year-on-year. The prices of villas in Madrid (2,022 euros/m2) rose by 11.5% but remained below 2008 (2,029 euros/m2).

The price of housing is increasing considerably throughout Spain, both for purchase and for renting. However, CaixaBank experts explain that this increase in house prices is not occurring at the same rate in all the towns in the country. In other words, there is a considerable distance between the most expensive and the cheapest municipality.

On the other hand, it must be taken into account that the Euribor has exceeded 2.4% of its daily rate in September 2022. This rise will cause mortgages in Spain to become more expensive, especially variable rate ones.

According to CaixaBank professionals, in the first quarter of 2022, San Sebastián (Guipúzcoa) was the municipality with more than 25,000 inhabitants with the most expensive price per square meter in Spain. Specifically, 4,207.8 euros/m2. All this, is according to data published by the Ministry of Transport, Mobility and Urban Agenda.

On the other hand, the amount registered in San Sebastián is 7.5 times higher than the 506.7 euros/m2 in Puertollano , Ciudad Real. Thus, Puertollano is positioned as the municipality with more than 25,000 inhabitants with the cheapest price per square meter in the country. In other words, it is an ideal location to acquire a home.

From CaixaBank they warn that “factors such as the geographical location of the home, its orientation (north or south), influence the appraisal of real estate; if it is well communicated and has access to services, usable square footage, age and condition, communal areas, an elevator or central heating or if it has systems that improve its energy efficiency, among other elements, all influence the valuation.

In short, the price of a home in Spain is determined by numerous factors that must be taken into account. Thus, despite the fact that the purchase price has skyrocketed in recent months, the rate of growth is uneven among the municipalities of Spain. Puertollano heads the list of cheapest municipalities in Spain to buy a home, according to CaixaBank and at the same time boasts an AVE (high-speed train) station.

As stated by 'Tinsa', a real estate data digital valuation and management platform, the average home in Puertollano is made up of a four-bedroom apartment and an area between 90 and 110 square meters. The value of the property is around 68,776 euros and the house has an average age that usually exceeds 30 years.

On the opposite side is San Sebastián. In this municipality in the Basque Country, the average dwelling is a four-bedroom flat with an area between 70 and 90 square metres. Likewise, the age of the property exceeds 30 years. However, the average value stands at 444,167 euros;  6.5 times more than in Puertollano.

Finally, CaixaBank experts estimate that “the rise in housing prices may have some continuity due to the rise in construction costs, aggravated by the war in Ukraine and the bottlenecks in the value chains. The forecasts point to the number of sales falling by just over 10% in 2023 and the price of housing slowing down significantly but maintaining a positive growth rate.

Real estate agencies are saying "It's a good time to sell". They are reminding people that the price is stabilising at its maximum and that the demand still has purchasing power and there is still attractive financing available.

As explained by the General Council of Official Associations of Real Estate Agents of Spain, the increases in interest rates that the European Central Bank has applied and those that are yet to come will cause a fall in housing prices, as well as a decrease in the purchasing power of potential buyers and a tightening of financing conditions for mortgages.

According to the agency any owner who wants to sell should take advantage of the current conditions, which adds that in this new scenario, "mortgages are more expensive for both the individual and the investor, but it is with the individual that this increase is going to have a greater impact. The drop in housing prices predicted by the ECB (of around 9% in two years) is logical because there is going to be a part of the demand that is going to disappear from the market and, with equal supply, prices will drop".

The General Council of the COAPI (Consejo General de Colegios Oficiales de Agentes de la Propiedad Inmobiliaria) believes that some buyers are going to try to advance purchases to avoid future increases in both the price of housing and mortgages. However, there will also be another profile of individuals or investors who can afford to wait and decide to operate long-term, once the macroeconomic environment has stabilised and access to financing is less expensive.

In fact, the organisation emphasises that "in the coming months a window of opportunity will open due to the general fall in prices that will benefit investors who have liquidity and can afford to wait for the right moment to buy."

Where is the cheapest city in Spain to live? Establishing which is the cheapest city in Spain is not an easy task, as many aspects need to be taken into account such as the price of housing, taxes or transport.

In this case, it is also important to assess income, as a general rule, depending on the city in which you reside, the salary will be higher or lower. Based on Kelisto's latest study, which was conducted in 2018, there is one city that outperforms the rest.

Assessing the purchase of housing, taxes, transport costs and income levels of the different cities in Spain, it was concluded that Palencia was by far the cheapest city in Spain to live in, with a cost of living 30.06% below the average. After Palencia was Melilla (17.13%) and Lugo (16.94%).

According to the ranking carried out by Kelisto, the cheapest cities in Spain to live in are the following:

1. 1. Palencia - The Cheapest City in Spain
2. 2. Melilla
3. 3. Lugo
4. 4. Logrono
5. 5. Teruel
6. 6. Caceres
7. 7. Zamora
8. 8. Avila
9. 9. Soria
10. 10. Leon

Of course, the fact that they are cheaper to live there does not mean that the salaries are respectively lower. In the case of Palencia, for example, the average annual income is 23,654.17 euros.

As declared by Bankinter, in Ciudad Real the square meter costs 1,018 euros, so it can be said that it is the cheapest place to buy a home today (but not to reside). After Ciudad Real we find Ávila (1,037 euros per m2), Soria (1,041 euros per m2), Lugo (1,050 euros per m2) or Castellón (1,078 euros per m2).

In the case of renting housing, Orense is the cheapest city to rent, with an average of 5.9 euros per square metre. It is followed by Ciudad Real (6 euros m2), Zamora (6 euros m2) and Lugo (6.1 m2).

As far as the IBI (Real Estate Tax) is concerned, as explained in the OCU, San Sebastián is the city whihc has the lowest IBI at 147 euros. It is followed by Bilbao (153 euros), Vitoria (258 euros) and Pamplona (314 euros).

The price of public transport is also a great conditioning factor in understanding the cheapest city in Spain. FACUA has studied the price range and has established which city has the lowest cost of public transport. In this case, it is Logroño, with a price of 0.53 euros for a bus ticket.

It is followed by Ávila (0.55 euros), Salamanca (0.59 euros), Palencia (0.60 euros), Santiago (0.60 euros), Vitoria (0.60 euros), and Segovia (0.60 euros). The most expensive route is in Madrid at 1.83 euros for the bus ticket.

If you want to travel and not spend too much, it is best to choose one of the low season times of the year for visiting. This means that you will have to forget about travelling in summer, at Christmas, at Easter and even on 'puentes' or holidays.

The best dates to travel will be just after the summer, that is, during the month of October, or just after the Christmas season, in the middle of January. They are the cheapest trips you will find, so you could save even more than half of what it would cost you in high season.

Where are the most expensive cities to live in Spain?

Now we know the cheapest cities to live in Spain, let's look at the most expensive cities to live in. To carry out this ranking, similar aspects were  taken into account:

1. 1. San Sebastian
2. 2. Barcelona
3. 3. Vitoria
4. 4. Madrid
5. 5. Palma de Mallorca
6. 6. Valencia
7. 7. Girona
8. 8. Albacete
9. 9. Oviedo
10. 10.Tarragona

In the case of the most expensive cities to live in, in most cases they are also the ones that offer the lowest quality of life, so they are the least recommended to settle and live in, although they are usually good tourist destinations given the wide range of entertainment that is on offer.

This is a question that is being asked by so many considering a move to Spain either permanently or part-time. However, it is not an easy question to answer. It will depend very much on your needs and lifestyle requirements. There’s a lot to take into consideration when choosing a place to live; job opportunities, healthcare, schools if you have kids, affordable accommodation and so on…

NomadList.com has just made the choice a little easier by shortlisting the best places to live. The list offers recommendations with a Nomad Score which is based on a number of factors such as cost of living, healthcare, weather, family life and numerous other data points. All with the objective of helping you to decide which is the best city to live in and/or work from remotely.

The list is topped this year by Barcelona, knocking Tenerife off the Nº1 spot. The fact that Barcelona boasts some of the best job opportunities while having a beach at the same time is a strong selling factor for those looking to work in Spain. However, Tenerife’s warm climate all year round and large ex-pat community has enabled it to stay near the top at second place. This is a great place for families to establish their homes by the sea at a reasonable price.

No matter which city on the list you choose, each one has its own unique selling points so if you are in doubt why not take a holiday or rent an apartment for a few months or so to properly check out the area before taking the plunge and that way you can be sure the place ticks all your boxes. So why not get cracking and start your Spanish property hunt!

Start Hunting!

Costa del Sol property bargains are easy to find if you know where to look. And for this reason, Eye on Spain is here to help with a selection of affordable properties for sale along the Costa del Sol. From beachfront apartments, village houses with sea views to apartments with swimming pools, all of these properties are for sale for under €100,000.  Take a look!

For Sale: Over 200 properties with sea views on the Costa del Sol

The price of second-hand housing in Spain has registered a slight decrease of 0.1% during the month of August, standing at 1,825 euros / m2, according to the latest property price index. If we look at the last quarter, the price has risen 1.1% and if we look at the data for August 2020, the year-on-year increase is 5.2%.

The price has fallen during the month of August in 11 Spanish regions. Castilla-La Mancha (-1.1%) led the fall followed by Aragon (-0.9%), Castilla y León and Navarra (-0.7% in both cases). However smaller drops were registered in Madrid, the Balearic Islands Asturias (-0.4% in the 3 regions), the Valencian Community (-0.2%), Euskadi, Catalonia and Galicia (-0.1% in the 3 cases). On the contrary, Andalusia (1.4%) showed an increase in prices followed by Cantabria, Canarias and La Rioja (0.4% in the 3 territories). In Extremadura, prices grew by 0.2%, while in Murcia they remained stable.

The Balearic Islands with 3,196 euros / m2 is the most expensive autonomous region followed by the Community of Madrid (2,943 euros / m2). On the opposite side of the table, we find Castilla-La Mancha 866 euros / m2), Extremadura (927 euros / m2) and the Region of Murcia (1,055 euros / m2), which are the cheapest communities.

20 provinces registered higher prices than a month ago. The greatest increase was seen in Almería (1.5%), followed by Ourense (1.2%), Guadalajara (1.1%), Santa Cruz de Tenerife (0.9%), Malaga, Guipúzcoa and Pontevedra ( 0.8% in the three provinces). On the other hand, Valladolid (-5.8%) heads the list of provinces in which the price has fallen during the month of August, followed by Albacete (-2.4%) and Valencia (-2.1%) .

Guipúzcoa is the most expensive province to purchase a home (3,209 euros / m2) ahead of the Balearic Islands (3,196 euros / m2). They are followed by Madrid (2,943 euros / m2) and the province of Barcelona (2,719 euros / m2).

Ciudad Real is the cheapest province with a price of 750 euros for each square meter. They are followed by Cuenca (779 euros / m2) and Toledo (803 euros / m2).

Buying a house or flat in the Valencian community is 37% cheaper now than before the crisis, in 2006, although it has risen 11% in 5 years

The cumulative price of homes for sale has risen in the Valencian Community by 11% in 5 years but has fallen by -37% in 15 years (2006). If three decades ago an average of 181,600 euros was paid a flat with 80 square meters, now 113,700 euros would be the average price. This is reflected in the study 'Cumulative variation of housing in Spain 2021' prepared by the Fotocasa Real Estate Index.

However, if we analyse what was paid for a home for sale 5 years ago, the average price per square meter of the home has increased by 11% in the Valencian Community, from 1,281 euros / m2 in June 2016 to 1,422 euros / m2 in June 2021. Thus, Valencians 5 years ago had to pay an average of € 102,480 for an 80 m2 home, compared to €113,768 that would be paid now.

With regard to the province capitals, the cumulative increase in sales from highest to lowest in the Region in the last 5 years (since 2016) is 29% in Valencia capital, 12% in Alicante and 10% in Castellón de la Plana.

Despite the 29% increase in the sale price in Valencia capital since 2016, the fall in these 15 years stands at -28%. Thus, for a home with 80 square meters, 231,177 euros would have been paid 15 years ago, while in 2016 they would have paid 129,686 euros and in 2021 they would pay 167,154 euros.

In the city of Alicante, the price of homes for sale has risen 12% in the last five years, although the fall in 15 years stands at -26%. Thus, if 15 years ago an average of 175,448 euros was paid for an 80 m2 apartment, 5 years ago 114,881 euros would have been paid and now 129,132 euros.

As for Castellón de la Plana, it has risen by 10% in five years but fallen by -42% in 15 years, meaning one would have paid an average of 177,086 euros in 2006 for an 80 m2 apartment, 93,532 euros in 2016 and 102,466 in 2021.

The price of second-hand homes has fluctuated a lot over the last 15 years. Since it reached the maximum price in April 2007, the current price is 37% below. However, although the price of second-hand housing is still very far from the prices of the real estate bubble, it has increased in the last 5 years by an average of 16%, explains the Director of Studies and Spokesperson for Fotocasa. According to the expert, at the moment, the price is quite stable and we will not see big increases or decreases in price during 2021.