Do you want to buy a house in Spain? Here's what you need to know in 2024

Apartment in Spain or house? Many people who are thinking about buying real estate on the Iberian Peninsula have this dilemma. In such a situation, our question is always: how much time do you plan to spend in Spain? If it is a significant part of the year, and not just a few holiday weeks, we always suggest a house and we have been selling houses on the Costa del Sol for years.

When looking through impressive photos online, we can see our own house in Spain in our imagination and this is a very tempting prospect. However, the decision to buy must be carefully considered and you must be aware of the pros and cons associated with this type of property. There are, of course, much more of the former. Buying a house may be, above all, a good investment if you are thinking about purchasing property for this purpose.

Take note

Renting a house in Spain can be profitable, as seen in Dream Property's offer. A modern house on the Costa del Sol can be rented to tourists for PLN 3,000-6,000. euro per week, and a terraced house for about EUR 1,500.

How much does a house cost in Spain in 2024? 

Since we're talking about money, let's stay with it for a moment. Here's how house values in Spain have changed recently, taking into account several popular property price indices.

In 2023, most indices showed a price increase of just over 8% (percentage changes year-on-year). This is what they looked like, among others: data from the Idealista website, the National Institute of Statistics and the Association of Spanish Notaries. 

And what are the forecasts? The analysis and markets department of Bankinter predicts that the prices of residential properties in Spain will increase by 7% in 2024 and by another 4% in 2025. 

Buying a house in Spain in 2024 poses many questions

However, before you focus on prices, you should carefully define your expectations regarding purchasing a property in Spain. Everyone has different priorities, needs and opportunities.

Here are some key questions you need to answer: 

• You want to buy real estate as an investment or for your own use;
• Are you looking for a place permanently or only for a specific time of the year, e.g. holidays;
• What region do you want to have a house in;
• Do you want to have a view of the mountains or the sea;
• Where would you like to live: city, suburbs, countryside, close to the sea;
• What type of property are you looking for: a villa, a country house, or maybe a property with outbuildings; 
• Whether it is to be a house from the secondary or primary market;
• What style should the house be in, Andalusian or modern;
• how many bedrooms do you need (important - in Spain the number of rooms is the number of bedrooms plus the living room);
• Whether amenities such as a large terrace, parking lot, swimming pool, close proximity to sports facilities (e.g. golf courses, tennis courts), shops, restaurants, etc. are important to you;
• Do you prefer a typically Spanish neighbourhood or do you prefer an international neighbourhood; 
• Whether the property is to be located close to the airport; 
• Whether you want to rent your house in the future;
• Are you sure you can keep the house because someone will have to take care of it during your absence;
• Are you considering a property for renovation?

Once you answer all these questions, you will be a giant step closer to buying a house in Spain. 

In which region of Spain should you buy a house? That is the question...

Spain offers a wealth of diversity and beauty. It boasts vibrant cosmopolitan cities, tranquil villages, stunning green inland plains and arguably some of the most beautiful coastal regions in the world. First you need to consider what is most suitable for you.

Real estate prices in individual regions vary greatly. You will find different rates when buying a house in Madrid, Marbella or Barcelona, where prices will be high, different in regions such as Andalusia or Valencia, where foreigners like to invest, and still different in cheaper inland Spain (e.g. Castile-La Mancha). You also have to take into account that the closer you are to a tourist town or popular resort, the higher the prices will be. 

There are many factors influencing the price, but if you are buying a house in Spain for rent, it is also worth paying attention to the weather. The climate on the Iberian Peninsula is quite diverse, so if you are looking for a house for investment, you should rather exclude the regions located in the north and west-north of the country. It's a beautiful area, but the climate there is a bit colder. 

It is worth taking a look at the average temperatures during the holiday months. In the northern cities of La Corunia (Galicia) and Santander (Cantabria) it is 22 degrees in July and August. In central Madrid, the average temperature is already around 26-28 degrees, and in Seville (Andalusia) it is already around 30 degrees. Just like on the Costa del Sol, but there is a typical Mediterranean climate, characterised by very mild winters and long, hot summers. Simply put, the further south you go, the warmer it will be.

Consider these house locations in Spain if you are planning to buy for investment

Properties in Spain can be very exclusive and expensive, mainly found in tourist areas. Consider them especially when you are planning to buy for investment. Places where property prices are particularly high are:

• Madrid - the capital of Spain is a real commitment, houses in this location are among the most expensive in the country.

• Barcelona – the second largest city in Spain. You can buy a house here, attractive in terms of investment, for short-term rental. Barcelona is one of the top cities in the world most frequently visited by tourists. 
• Marbella – Spanish Saint-Tropez, the second largest city on the Costa del Sol located on the Mediterranean Sea. One of the most expensive resorts in Europe, houses are bought here by many foreigners, often very famous ones.
• Formentera – a small island with huge potential. Prices are high here, but if you are looking for a larger house with a beautiful sea view, this is definitely the place to go.
• Sant Joan de Labritja – located in Ibiza, which is one of the reasons why it is so popular. 
• Ibiza Town – the most exclusive place in Ibiza. It has stunning homes, some even with private beaches, golf courses, swimming pools and spectacular beach views. It is considered by many to be a party island, which is why it is a popular tourist destination.
• San Sebastian – the houses here are very modern. If you want to live in a large, multicultural city with mountains and the sea nearby, this is a great place. 
• Baqueira in Lleida - a perfect place for people who love winter sports and nature. It is located in the Pyrenees and there are ski resorts nearby.

House in Spain – where to look for opportunities in 2024?

People with a moderate budget who plan to live on the Iberian Peninsula all year round often choose Spanish townhouses, which, unlike villas, are among the cheaper houses in Spain. While villas are self-contained properties with private pools and gardens and therefore generate higher costs, townhouses are located in large complexes, are semi-detached or detached, and have large terraces instead of private gardens. With prices starting from €300,000, this style of apartment appeals to many buyers.

Where to look for opportunities when looking for a house in Spain in 2024? The cheapest locations in Spain are: Castile-La Mancha, Extremadura and Murcia.

Fun fact 

We are increasingly receiving inquiries about properties in Spain for 1 Euro. If you are interested in this topic, please read our entry, among others: about houses for 1 Euro in Spain. You'll find out whether it's an absolute hit or a crapshoot.

Popular locations to buy a house in Spain

The most popular areas for buying a house in Spain are the coastal regions – Costa Blanca, Costa del Sol and Costa Brava – due to their mild climate and beaches. They are also popular because they are close to larger cities: Valencia, Malaga, Alicante and Barcelona.

The Costa del Sol is located in the south of Spain and has a dry climate with little rainfall, while on the Costa Blanca, in the south-east of the country, the rainy season lasts from October to March and then it rains a little more.

Get to know the Costa del Sol better 

The Costa Brava, or "wild coast", located in the north-east of Spain, has a milder climate than other coastal regions and is more protected by the mountains. There is also more rainfall and fog here than on other coasts

Remember!

If you are considering buying a house in Spain to rent it out or sell it after many years, you must think about what profits you can generate. A large city or coastal region are locations provide a large number of tourists. Over time, a house located in such a location will gain in value – this type of property rarely goes out of fashion due to its location and views. The best locations are always in high demand.

House in Spain – a thorough analysis of the property is necessary 

When buying a house, you should also remember about possible transaction pitfalls. First of all, we mean the legal situation of real estate. It's mainly about the mortgage burden and urban planning issues. While the mortgage is not a problem (everything will be settled before signing the notarial deed), planning matters are what you need to be careful about. It is better to carefully check the urban planning documents of the area, because it may turn out that in a year or two a seaside apartment complex will be built near the house. And if we value peace, if possible, we should also check whether our dream house will be a quiet refuge not only in the off-season, but also in the middle of summer.

Important warning! 

It is also better to avoid offers such as "selling a house in Spain quickly and without unnecessary formalities." And you should definitely avoid those that require cash payments. Please note that the maximum cash payment amount in Spain is EUR 2,500 for non-residents and EUR 1,000 for residents. It's also better to be prepared for transaction costs. Notary public, Spanish taxes and entry in the real estate register are between 10 and 15%, which must be added to the price of the property.

A few words of summary

As you can see, there are many issues that need to be carefully considered before you start looking for a specific home. In addition to knowing what type of property you're looking for, you also need to ask yourself whether you want to go it alone or work with an experienced real estate agent. Take into account that when buying in a foreign country, it is worth working with specialists who know the market, language and applicable law to avoid problems that most often result from lack of knowledge. 

We are here to help you avoid any obstacles and make your future home in Spain a safe investment.