HOUSE PRICES IN SPAIN began 2023 with a year-on-year rise of 5.4% in January, with an average nationwide price of 1,922 €/m2 according to the most recent data published by Spanish real estate industry specialists, Idealista.

The data, released on Thursday, illustrates a healthy increase in house prices for the first month of the year, and the second-highest increase in real estate prices across southern Europe.

The Spanish property market remains remarkably resilient and attractive to long-term investors, especially when compared with some northern European countries where an unprecedented rise in interest rates, runaway inflation, and a cost of living crisis, have brought an abrupt end to a decade-long boom in some of the bloc's largest property markets.

The latest data from the National Institute of Statistics (Instituto Nacional de Estadística), the government agency responsible for publication of the Consumer Price Index, shows that inflation for January stood at 5.8% - an increase of 0.1% since December.

House prices outpace inflation in Costa Blanca

However, property prices in 16 cities across the country have recorded increases that outpace inflation. Santa Cruz de Tenerife (18.7%), Alicante (13.2%), Valencia (11.4%), Guadalajara (11.3%) and Cuenca (10.8%) all registered an increase in house prices in double-digit percentages.

Locally, Orihuela Costa and Torrevieja lead the January 2023 house price increases in the south Costa Blanca, with property prices in the Orihuela municipal area increasing by 18.5% to 2,246 €/m2 compared with the same month one year ago.

Our neighbouring city of Torrevieja registered a 16.1% increase in property prices, outpacing inflation by almost three times, with the average price of one square metre of property rising to 1,672 €.

Nationwide, only Marbella in Málaga recorded a higher increase in year-on-year house prices in January, with an interannual rise of 19.9%.

Spanish property prices in Torrevieja and Orihuela Costa

The national increase in Spanish house prices continues an established trend, with year-on-year real estate prices increasing by 5.0% in December, and local prices continuing to climb.

The Costa Blanca remains the most attractive region for international buyers looking for a Spanish holiday home or investment property in the Mediterranean province.

Torrevieja and Orihuela Costa continue to lead this segment of the real estate market. According to the latest data provided by the Notarial Association of Valencia, these two municipal areas alone account for more than one-third of all international sales formalised in the Alicante province.

23,920 international property sales took place in the Alicante province between January and September 2022, with 4,854 property sales located in the city of Torrevieja. A figure representing an increase of 96% over the same period last year, and 57% more than before the pandemic.

International sales exceed pre-pandemic levels

Swedish and German buyers accounted for Torrevieja's sales successes, with residents of the Nordic country snapping up 787 homes, and German buyers securing 484 properties in the city in the first nine months of the year.

Orihuela Costa remains a firm favourite with British and Belgian buyers, with a total of 3,396 properties sold to international buyers and investors during the first three quarters of 2022. Year-on-year property sales increased 85% annually, an increase of 43% over pre-pandemic property sales.

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