Property prices in the Alicante Province reach a record high of more than €2,300 per square metre

SPANISH HOUSE PRICES have reached new record levels nationwide, recording a 9.6% annual increase in the price of properties throughout the country in October.

Driven by an influx of international buyers, Spain's real estate market is proving resilient amid the ongoing challenge of limited supply and increasing demand from overseas.

The latest data released by Spanish real estate experts Idealista illustrates the year-on-year rise in resale prices, with the industry body highlighting an increase of 2.6% in the last quarter alone and a 1.2% price rise in just one month.

The October data marks six consecutive months of record property price increases, with the average price of resale property across the Iberian peninsula standing at 2,209 € per square metre and exceeding the historic high of 2007.

Resale house prices rise in cities across Spain

All Spanish provincial capital cities have seen price increases over the past year, except for the northeastern city of Huesca, where property prices remained static.

València leads the way in price increases, having risen by 20.0% over the past 12 months. The city of Málaga registered an annual increase in property prices of 19.6%, followed by Madrid (18.8%), Santander (18.1%), Alicante (16.7%), and Granada (15.7%).

Among the major city real estate markets, resale prices have also risen in Palma (11.9%), Barcelona (10.8%), Seville (6.5%), Bilbao (5.9%), and San Sebastián (5.5%).

The average price for a single square metre of resale housing in the city of Alicante now stands at 2,169 €.

Property prices increase in all autonomous communities

Resale home prices have increased in all the autonomous communities over the last 12 months. The largest increase has been recorded in the Canary Islands, where homeowner expectations have increased by 16.3%.

Properties in the Balearic Islands registered double-digit increases, with the average price of a home costing 14.8% more than this time last year.

The Valencian Community has seen resale house prices increase by 14.2%, with prices outpacing property value increases in 12 out of the 17 Spanish communities.

Resale house prices in our neighbouring Region of Murcia registered average price rises of 14.9% over the past year, slightly ahead of the Valencian Community and Andalucía (9.4%).

Higher house prices in the Alicante Province

All provinces but four (Badajoz, Ciudad Real, Córdoba and Ourense) have seen annual price increases in the last 12 months. Santa Cruz de Tenerife leads the way with a 16.4% increase in average resale property prices, followed by Las Palmas (16.0%) and the Balearic Islands (14.8%).

In the Alicante Province, the price of resale property for sale has appreciated by 13.9% year-on-year, with the average sale price of one square metre rising to 2,324 €.

In contrast, the Balearic Islands is the most expensive province to buy a property in Spain, with an average price of 4,663 € per square metre, ahead of Guipúzcoa (3,664 €/m2) and Madrid (3,638 €/m2).

The record-setting increase in property values in the Alicante Province is marked by the last recorded month, with a notable increase in prices of 1.1% for the month of October alone.

The factors influencing Costa Blanca house prices

Demand for properties continues to outpace the available supply, particularly in the most desirable areas of South Costa Blanca, such as Alicante, Torrevieja, and Orihuela Costa.

These areas attract a mix of retirees, holidaymakers, and digital nomads, who have increasingly favoured locations offering a high quality of life and a relatively lower cost of living compared with other European countries.

Property sales to international buyers account for 20% of the national real estate market, and increasing interest from buyers and investors from emerging markets such as Ukraine, the USA, Portugal and Italy, suggests that further house price rises are almost inevitable.

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