Why are flats in Spain cheap compared to other Western European countries?

More and more Poles, taking advantage of low prices on the primary and secondary markets, are deciding to buy luxury properties on the Iberian Peninsula. Find out why flats in Spain are so cheap.

The Spanish property market has been very popular among foreign investors for years. And for good reason – prices of apartments and houses on the Iberian Peninsula can be significantly lower than in other Western European countries. What are the reasons for such affordable purchase costs and is it worth considering investing in real estate? Find out where and why Poles are buying flats in Spain.

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It is not without reason that foreign investors have taken a particular liking to Spain. The Iberian Peninsula has more to offer than just a well-developed tourist infrastructure and a sunny climate. The local premium real estate market is characterised by an attractive price-quality ratio, even in the most sought-after locations.

The price of a house in Spain is lower than that of a comparable property in other popular Western European destinations, such as Italy or France. Added to this is the potential return on investment, which is also more attractive in Spain, especially for short-term rentals. Available data indicates that it is approximately 3-4% higher than in the countries mentioned above.

The cost of living in Spain depends, among other things, on its location. As you might expect, the most expensive regions are typically tourist destinations. These include the Community of Madrid, the Balearic Islands, and the province of Gipuzkoa in the north of the country. In addition, the price is also influenced by the type of property – apartments and houses on the primary market usually cost 10-20% more than those on the secondary market.

Although Madrid and Barcelona are not among the cheapest locations, property prices in Spain are still lower than for similar properties in Munich, Paris or London. Depending on the size, standard and amenities, the price difference can be as much as 50%.

Price differences in specific regions, especially those located on the coast, are also significant. It is there, for example on the Costa del Sol or Costa Blanca, that you can find hidden gems, thanks to which you can buy exclusive properties even 20-30% cheaper than in the most popular cities.

Read also: How to buy an apartment or house in Spain?

Are you wondering why flats in Spain are cheap compared to other European countries? There are several reasons for this:
 

• The consequences of the economic crisis of 2007-2009 – as a result of the difficult situation in the country, there was a significant reduction in transactions on the housing market. This, in turn, led to an oversupply of properties, the effects of which are still visible today, despite growing demand.
   
• High competition – Spain boasts one of the largest property markets in Europe. Thanks to the large number of developers and the constant construction of new buildings, potential buyers can count on affordable prices.
   
• Friendly regulations for foreign investors – the process of purchasing luxury real estate is relatively simple. In addition, residents of other European Union countries can apply for mortgages on attractive terms.
   
• Lower costs – this applies to both construction and maintenance of properties, while maintaining high quality standards and modern architectural solutions. These rates are competitive compared to Portugal, France or Italy.

According to data, Poles bought over 4,200 properties in Spain in 2024 alone. This is 36.6% more completed transactions than in 2023. This, in turn, places them among the leading foreign investors in the Iberian Peninsula, more precisely in 9th place. Their share in the local market is 4.6%.

Why are Poles buying flats in Spain? The financial elite from the country on the Vistula River see local real estate as a way to invest their capital, but that is not all. Many investors treat luxury apartments and houses as a safe place to move to in the event of a military conflict. In addition, for many Poles, Spain combines prestige with a high quality of everyday life.

The numerous and convenient flight connections from Poland to major Spanish destinations are also important. This allows investors to easily and conveniently manage their properties and visit their second homes without any problems. Here are some examples of flights:
 

• to Alicante from Warsaw, Poznań, Gdańsk and Kraków,
• to Malaga from Warsaw, Wrocław and Kraków,
• to Barcelona from Warsaw, Katowice, Kraków, Poznań and Gdańsk.

You already know why flats in Spain are cheap. But what are the forecasts for the coming years? According to them, the property market is expected to see stable price growth of around 3-4% this year, especially in the premium segment. This, in turn, is not only linked to the protection of invested capital.

Rising property prices in Spain also mean the opportunity to earn high returns from renting premium properties in popular tourist regions. It is estimated that these could be as high as 5-7% per annum, with minimal involvement from the owner if they decide to work with an agency.

For many buyers, purchasing a luxury property in Spain is not only a financial investment, but also an investment in an exclusive Mediterranean lifestyle. The Iberian Peninsula offers over 300 days of sunshine a year, good cuisine and a rich culture. It is also a place where the most demanding customers will easily find an apartment or house close to the sea and with premium amenities.

The growing popularity of luxury real estate is no accident – attractive property prices in Spain are attracting Polish buyers who are looking for a home for themselves or to rent out. If you want to take advantage of the favourable prices per square metre on the Iberian Peninsula, check out the offer of the Polish real estate agency Elite World Estates! With its help, you will find your dream apartment or house in Spain.

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Let us narrow down the search among the properties available through us, by contacting us and finding the best options for you. 
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Please enter your contact details below and we will contact you as soon as possible.

Let us narrow down the search among the properties available through us, by contacting us and finding the best options for you. We are here to help you! Please enter your contact details below and we will contact you as soon as possible.

Let us narrow down the search among the properties available through us, by contacting us and finding the best options for you. We are here to help you!
Please enter your contact details below and we will contact you as soon as possible.