According to a report by Tinsa, a property appraisal company, holiday homes on the Spanish coast have seen a price increase of 6.3% in the first quarter of 2023, reaching an average of €2,550 per square meter. This price level is 35% higher than the average value of primary residences in coastal areas.
In the first quarter of 2023, the average value of both primary and secondary residences in the 250 analyzed coastal municipalities recorded a year-on-year variation of 4.1%, reaching €1,591 per square meter. This represents an increase from the 3.5% observed during the same period in 2022.
Across the four major coastal regions (Mediterranean, Atlantic, Northern, and the islands), residential prices showed year-on-year increases between 4% and 5%. Over the past five years, the average growth rate (CAGR) in coastal municipalities has been 2.8%, lower than the national average of 4.3%. The islands have experienced the highest growth rate at 3.9%, while the northern coast has seen a more modest growth rate of 1.8%.
The most common price range for vacation homes falls between €1,800 and €3,600 per square meter. In the single-family home category, there are premium locations where prices exceed €6,000 per square meter. Exceptionally exclusive properties, such as detached houses on the coast of Mallorca, can reach unit values of €11,000 per square meter.
The islands of Mallorca, Ibiza, Formentera, Gran Canaria, and Santa Cruz de Tenerife have the highest estimated prices for vacation homes, which aligns with their predominantly international clientele with high purchasing power. According to Tinsa's experts, the average value of second homes would reach €6,000 per square meter in the Balearic Islands. This is followed by the province of Málaga (€3,400 per square meter), Guipúzcoa (€3,300 per square meter), Santa Cruz de Tenerife (€2,900 per square meter), and Girona and Vizcaya, both around €2,800 per square meter.
The report confirms the significant concentration of foreign purchases in Spain, with three autonomous communities accounting for 65% of these purchases. The Valencian Community leads the way with 30% of houses bought by foreigners in Spain, followed by Andalusia with 21% and Catalonia with 14%. The Canary Islands, Madrid, the Balearic Islands, and Murcia also attract foreign buyers, with shares ranging from 5% to 9%.
Over the past two years, the Valencian Community has experienced the highest increase in foreign purchases, rising by 7.4 percentage points from 28.5% to 35.9%. The Canary Islands have also seen a significant increase of over six points, going from 30.8% to 37%. Other regions, such as Andalusia, Murcia, Catalonia, and the Balearic Islands, have experienced more moderate increases ranging from 1.8 to 3.2 percentage points. Madrid has also seen an increase in foreign purchases, although to a lesser extent.