Walter Finch
THE Spanish government has been blamed for the soaring cost of housing in Andalucia, which is up 8.3% in a year – and by nearly a fifth from two years ago.
The average cost across the autonomous community now stands at €2,235 per square metre, according to the latest property report by Idealista – but the regional variations are massive.
The provincial capitals have seen some of the biggest rises, with prices in Malaga jumping by 17.9% in a single year to €3,095 per square metre. Go back just two years and prices have increased by a third.
While in nearby Granada city it is 15% more expensive, and in the city of Cadiz a house cost 9.4% more than September 2023.
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In fact Malaga takes the crown as the priciest capital in Andalucía, with an average cost of €3,095 per square metre – unsurprisingly driving protests and demonstrations about the city’s lack of liveability.
In second and third place respectively are Cádiz (€2,936 sqm) and Sevilla (€2,354 sqm).
Meanwhile, the provinces Sevilla (3.7%) and Jaén (1.7%) have seen the smallest increases. In the latter you can buy a home for just €838 sqm – and €1,202 sqm in the capital itself.
Idealista has slammed the price surges in the main housing markets for causing new buyers to fork out over 30% of their income on mortgage payments.
Spokesperson Francisco Iñareta blamed a smorgasbord of poor government policy on driving the upwards trend, including ‘the lack of foresight in land development, bureaucratic labyrinths, labour shortages, populist noises and population growth’ in the most dynamic areas of the country.
These factors coupled with a lack of affordable new build housing have created a ‘perfect storm’ for Spain’s housing market, according to the portal.
“Used housing is unable to meet growing demand and, in the face of a shortage of supply, prices are rising sharply,” Iñareta said.
“It would be urgent for politicians to take the necessary measures, without red lines, to incentivise and accelerate the construction of new housing where it is needed and to provide decisive support for the launch of large developments that would alleviate the pressure in the most tense markets.”
House prices across Spain have increased by 8.7% over the past year – beating Andalucia – with the national average now at €2,182 per square metre.
Some of the most significant price hikes have been recorded in Madrid (17.8%), and Valencia (16.7%), with other cities like Barcelona, Bilbao (both 7.8%), and Sevilla (6.1%) also seeing steady increases.
At the higher end of the market, San Sebastián remains Spain’s most expensive city, with prices at €5,570 per square metre, followed by Madrid (€4,756 sqm), Barcelona (€4,561 sqm), Palma (€4,308 sqm), and Bilbao (€3,384 sqm).
On the opposite end of the spectrum is Zamora, the most affordable capital, with a price of €1,175 sqm.
