Record-Breaking Property Prices in 7 Spanish Cities

As property prices continue to soar across Spain, seven cities are breaking records, setting new all-time highs in both residential sales and rentals. According to the latest Idealista price index, the average price of second-hand housing in Spain has risen by 7.5% year-on-year during the second quarter of 2024, hitting 2,138€ per square metre. This upward trend reflects not only the increasing demand for Spanish real estate but also the ongoing challenges within the housing market. So, which cities are seeing the biggest impacts, and how does this affect non-resident property owners?

Let’s take a closer look at the seven Spanish cities reaching all-time high property prices: Barcelona, Madrid, Valencia, Málaga, Palma, Las Palmas de Gran Canaria, and Cádiz. 

1. Barcelona 

Barcelona remains the most expensive city in Spain to rent a property, with rental prices reaching 22.10€ per square metre per month. Property prices have also reached an impressive 4,430€/m². Areas such as Ciutat Vella, Sant Marti and Eixample are the most expensive districts in Barcelona to rent a property, but Gràcia, Sants-Montjuïc and Sant Andreu are the most expensive to buy.

2. Madrid

The capital of Madrid is not far behind Barcelona, with property prices averaging 4,514€/m² and rents at 19.80€/m² per month, making it the second most expensive place to buy a property in Spain. 16 of Madrid’s 21 districts have registered record highs for rents in August 2024, although they haven’t yet reached record levels.

3. Valencia 

Valencia has seen the highest rent increase among the seven cities, with prices up 19% year-on-year. The property market has also risen significantly, with prices now at 2,554€/m². Whilst these prices aren’t quite at the same level as Madrid and Barcelona, Valencia has the maximum property (2,554€/m²) and rental (14.10€/m²) prices. 

4. Málaga 

The Costa del Sol's capital, Málaga, continues to experience significant growth. Property prices have risen nearly 20% to reach 3,016€/m², with rents averaging 14.50€/m² per month. The city is currently seeing record rent and property prices across all areas, with properties averaging 145€/m² to rent and 3,016€/m² to buy. The city has seen a spike of 19.9% in sales prices, the most out of all the capitals analysed in the report. 

5. Palma (Mallorca) 

Palma, a popular destination for both tourists and expats, and the Balearic capital, now sees property prices at 4,144€/m² and rents at 17€/m² per month, a figure that has never been reached before. With regard to property prices, 11 of the 15 areas featured on Idealista reached the maximum prices, marking an annual increase of 9.4%. 

6. Las Palmas de Gran Canaria 

On the island of Gran Canaria, property prices have exceeded 2,300€/m² for the first time, with rents going above 13€/m². The growth in these prices reflects the increasing demand for island properties, particularly from international buyers. 

7. Cádiz 

Cádiz rounds off the list, with property prices now at 2,885€/m² and rents at 11.40€/m² per month. The Playa Santa Maria del Mar-Playa Victoria area in particular has the most expensive rental prices in the city, reaching 12.10€/m². This reflects the growing demand for coastal properties in Cádiz, a popular destination for both local and international buyers.

How IberianTax Can Help Non-Resident Property Owners

With property prices in Spain reaching new highs, non-resident property owners face increasingly complex tax obligations. At IberianTax, we specialise in making non-resident taxes simple and stress-free. Whether you’re renting out your property, planning to sell, or simply holding it as an investment, we ensure that your taxes are filed correctly and on time.

Our platform allows you to file your non-resident taxes online from anywhere in the world. With prices starting as low as 34.95€, our service is not only affordable but also fully recognised by the Spanish tax authorities (Agencia Tributaria). We’ll guide you through the process, from calculating your taxes to ensuring compliance with Spanish tax laws.

Ready to make your non-resident taxes hassle-free? Sign up today at IberianTax and let us handle the paperwork, so you can focus on enjoying your Spanish property.