Spain’s most expensive and cheapest places to buy a home revealed

Spain’s property market is becoming increasingly divided. Average home purchase prices are approaching €1 million in some municipalities while remaining below €60,000 in others. New figures published by the National Statistics Institute (INE) on Wednesday, 21 October, reveal the scale of the differences, with several Mediterranean and Madrid municipalities dominating the most expensive locations.

The figures, included in the INE’s 2026 Urban Indicators report, are based on residential property transactions completed during 2025. They also highlight substantial increases in property prices since 2013, particularly in parts of the Balearic Islands and the Costa del Sol.

Where are Spain’s most expensive homes?

Calvià, on the island of Mallorca, recorded Spain’s highest average residential purchase price among municipalities covered by the study, at €981,485. It was followed by Pozuelo de Alarcón, near Madrid, at €907,270, and Santa Eulària des Riu, on Ibiza, where the average reached €888,800.

Two other municipalities in the Balearic Islands and several affluent areas around Madrid also featured prominently. Marbella, on the Costa del Sol, occupied sixth position nationally, with an average purchase price of €742,787.

The INE’s ranking of the ten most expensive municipalities was:

These figures represent average prices paid for properties sold during 2025, rather than the prices currently advertised by estate agents. They are also averages per property, not prices per square metre, meaning differences in the size and type of homes sold can influence the results.

Source: INE Urban Indicators 2026

Spain’s cheapest municipalities tell a very different story

At the opposite end of the market, Puertollano in Ciudad Real recorded the lowest average purchase price, at €57,698. Two former industrial municipalities in Asturias followed, with average prices of €61,233 in Mieres and €62,838 in Langreo.

Loja, in Granada province, was the fourth cheapest municipality in the study, with an average of €72,493. Other relatively affordable locations included Archena in Murcia, Hellín in Albacete and Andújar in Jaén.

The contrast is considerable. The average home purchased in Calvià cost approximately 17 times as much as one bought in Puertollano, illustrating the extraordinary differences between local housing markets across Spain.

However, lower purchase prices do not necessarily mean that housing is more affordable for local residents. Wages, employment opportunities, household incomes and housing availability all influence what people can realistically afford.

Marbella and Torremolinos stand out in Costa del Sol figures

The latest figures place Marbella among Spain’s most expensive residential property markets, while San Roque, in neighbouring Cádiz province, also appears in the national top ten.

Another Costa del Sol municipality, Torremolinos, recorded one of the country’s sharpest increases in average purchase prices over the longer term. Prices there were 176.5% higher in 2025 than in 2013, the third-largest increase among the municipalities compared.

Only Tías in Lanzarote, where average prices rose by 180.6%, and Marratxí in Mallorca, with an increase of 179.6%, recorded larger rises over the same period.

The INE uses 2013 as a reference point because property prices had reached particularly low levels following Spain’s financial and property crisis. Consequently, these long-term increases should not be interpreted as annual price growth or evidence that prices will continue rising at the same pace.

Where are Spain’s most expensive rental markets?

The report also examines the cost of renting a main residence, although the latest available rental figures relate to 2024 rather than 2025.

Pozuelo de Alarcón, near Madrid, recorded the highest average monthly rental expenditure, at €1,499. At the other end of the scale, Lalín in Pontevedra had the lowest figure, at €330 a month.

The geographical concentration of expensive rentals is particularly striking. Of the 100 neighbourhoods with the highest average monthly rental expenditure, 94 were located in Madrid and Barcelona.

The rental figures reflect average expenditure on habitual residences and should not be confused with current asking rents or prices charged for short-term and tourist accommodation. Data for the Basque Country and Navarra are not included in this rental comparison because the necessary information was unavailable.

Madrid dominates the most expensive neighbourhoods

A more detailed examination of property prices per square metre reveals another significant contrast.

Madrid accounted for the 14 most expensive neighbourhoods among the large cities examined. Recoletos topped the ranking, with an average price of €10,952 per square metre, followed by Castellana at €9,624 and Almagro at €9,438.

The lowest figure among the comparable neighbourhoods was recorded in an area of Murcia incorporating much of Cañadas de San Pedro, at €783 per square metre. Parts of Córdoba also appeared among the least expensive, including El Higuerón-Majaneque-Alameda del Obispo and Alcolea.

Unlike the municipality-wide purchase figures, these comparisons measure the average amount paid per square metre, providing a different perspective on local market conditions.

What do the figures mean for property buyers?

The findings demonstrate why national property statistics can only tell part of the story for people considering buying a home in Spain.

Two municipalities within the same province can have very different property markets. Even within one town, prices may vary considerably according to location, property type, condition and proximity to beaches, transport connections or other facilities.

The INE’s 2026 report expands the information available on residential purchases, incorporating historical data from 2010 and more detailed comparisons for districts and neighbourhoods. The study includes property-price comparisons for municipalities with more than 20,000 inhabitants, so its rankings should not be interpreted as covering every village or settlement in Spain.

For buyers, the figures offer a valuable national benchmark, but they are no substitute for investigating the particular local market and individual property.

With housing affordability continuing to be a major concern across Spain, the latest statistics underline just how different the experience of buying or renting a home can be depending on where people choose, or need, to live.