Spanish Coastal Home Prices Surge 5.7% in Top Destinations

Explore the latest data on rising home prices in Ibiza, Malaga, Balearic Islands, and Alicante along the Spanish coast.

Spain house prices in coastal areas, including both first and second homes, saw a significant increase of 5.7% year-on-year in the first quarter of 2024, reaching €1,740/m2. This growth outpaced the national average increase of 3.3% in house prices in Spain during the same period, as reported by Tinsa. Among coastal towns, Malaga experienced the highest average increase in Spain house prices at 9.3%, followed by the Balearic Islands at 8.8% and Alicante at 7.2%. The top three most expensive towns on Ibiza were Sant Josep de sa Talaia (€4,191/m2), Santa Eulalia des Riu (€4,151/m2), and Ibiza (€3,656/m2).

In the Spain holiday home segment on the coast, prices also saw a notable increase of 3.9% year-on-year, reaching €2,650 per square meter. This suggests a tightening of prices in the primary residence market in these areas. Despite the higher year-on-year price increase for first and second homes (5.7%), first homes remain more expensive per square meter at €2,650. However, the volume of property transactions for first and second homes in coastal towns decreased by 11.2% in 2023 compared to the previous year, which marked the highest number of transactions in the last decade. New builds also saw a decline of 22.9% compared to 2022.

Additionally, Spain holiday rentals became more expensive in the first quarter of 2024, with an average increase of 8.9% year-on-year, according to the National Statistics Institute's Holiday Rental Apartment Price Index (IPAP). In real terms, excluding inflation, the year-on-year increase was 5.8%, indicating a clear upward trend in holiday rental prices. Tinsa reported that nearly three-quarters of the coastline saw price increases ranging from 5% to 30%, with the average increase in holiday home rental prices estimated to be close to 10%.

The Spain housing market in coastal areas, including both first and second homes, has experienced significant price increases, outpacing the national average. The Spanish holiday rental market has also seen a notable rise in prices, reflecting a growing trend in the sector.