PEOPLE wanting to buy a coastal home in Spain have to pay an extra 2.4% extra compared to inland properties, according to a survey from real estate valuation company Tinsa.
Housing in coastal municipalities became 5.7% more expensive year-on-year in the first quarter of 2024, with an average price of €1,740 euros per m2, compared to the 3.3% average Spanish property price.
Traditional beach apartments saw a lower 3.9% year-on-year rise, pointing to a tightening of prices in the market, according to Tinsa.
READ MORE:
- Property prices in Spain will increase more than previously expected this year, says Bankinter in latest report
- Spain and Portugal see some of the biggest surges in property prices in Europe, new figures show
The biggest average increases in coastal areas are in Malaga province(+9.3%), the Balearic Islands (+8.8%) and Alicante province (+7.2%).
The three most expensive municipalities are all on Ibiza and are Sant Josep de sa Talaia (€4,191 per m2), Santa Eulalia des Riu (€4,151) and Ibiza Town(€3,656).
Tinsa’s Andrea de la Hoz said: “Only in Ibiza is price ‘overheating’ detected with demand on the island trending towards luxury homes”.
Although the coastal first and second home market has shown a greater increase in year-on-year terms (5.7%), the first home is still more expensive per m2 at €2,650.
However, the number of home sales in coastal municipalities fell by 11.2% in 2023 compared to 2022-, a year that marked the highest number of deals in the last decade.
In regard to new builds, the market fell by 22.9% compared to 2022.
Holiday home rentals also became more expensive in the first quarter of 2024, with an average increase of 8.9% year-on-year, according to the National Institute of Statistics.
In real terms (excluding inflation), the year-on-year increase stands at 5.8% and reflects a clear upward trend in holiday rental prices, from 3.1% year-on-year in the first quarter of 2022 and 5.1% year-on-year in the first quarter of 2023.
Tinsa points out that almost three-quarters of the coast shows rises of between 5% and 30%, and estimates the average increase in holiday home rental prices at close to 10%.
Click here to read more Property News from The Olive Press.
