400,000 euro difference between cheapest and most expensive home in Spain

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home prices

The cost of purchasing a home in Spain has always varied significantly depending on the region. Properties in the inland areas are typically more affordable than those in high-demand holiday destinations along the Mediterranean coast.

Currently, the disparity is more pronounced than ever, with homes in the most expensive area costing nearly €400,000 more than those in the least expensive.

Rising real estate prices

In recent years, property prices in Spain’s major cities have continued to rise, resulting in significant price differences across regions. The average price per square metre in Spain reached a record high of €2,138 in the first half of 2024, marking a 7.5% increase year-on-year.

Significant price differences between cities

According to recent data from Idealista, San Sebastián is the most expensive city in Spain to buy a home. A 90-square-metre property there costs nearly €400,000 more than in Ciudad Real, the cheapest city. In San Sebastián, the price per square metre is €5,461, nearly three times the national average. This translates to an average cost of €491,490 for a 90-square-metre apartment. In contrast, the same size apartment in Ciudad Real costs €109,029, representing a difference of €382,461.

Madrid and Barcelona follow as the second and third most expensive cities, with a 90-square-metre apartment costing €406,260 and €398,700 respectively. These figures highlight the substantial price differences between the most and least expensive regions in Spain.

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Impact of limited new construction

The surge in home prices in major cities is largely due to a shortage of new housing developments. Francisco Iñareta, a spokesperson for Idealista, points out that few municipalities have launched new construction projects over the past 15 years. “This lack of new housing is putting immense pressure on the existing market, driving up prices,” Iñareta explains.

Urban vs. rural price differences

Beyond the differences between cities, there are also significant price disparities between urban and rural areas within the same province. In smaller towns surrounding provincial capitals, the same budget can often purchase multiple homes. Ferran Font, director of research at pisos.com, notes that in villages like Tamarite de Litera in Huesca, the average price of a home is just €31,412, while in the city of Huesca, it is €59,157.

The most affordable regions for home buyers

The most affordable homes in Spain are naturally found in less populated, rural areas, often referred to as “España vaciada” (emptied Spain). Regions such as Castilla-La Mancha, Aragón, Castilla y León, Extremadura, and parts of Andalucia not only have the lowest prices but also show a declining trend in property values. For example, a home in Albalate del Arzobispo, Teruel, currently costs an average of €25,347, a decrease of nearly 32% compared to three years ago.

Top ten cheapest Spanish cities to buy a home

According to data from pisos.com, the ten most affordable cities to purchase a 90-square-metre home are:

  1. Iniesta, Cuenca – €32,580
  2. Madridejos, Toledo – €32,344
  3. Malagón, Ciudad Real – €32,125
  4. Peñarroya-Pueblonuevo, Córdoba – €31,879
  5. Campo de Criptana, Ciudad Real – €31,877
  6. Tamarite de Litera, Huesca – €31,412
  7. Miajadas, Cáceres – €31,202
  8. Las Pedroñeras, Cuenca – €31,540
  9. Mota del Cuervo, Cuenca – €26,538
  10. Albalate del Arzobispo, Teruel – €25,347

Read also: Home prices in Spain reach historic high

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