What’s Happening in Spain’s Housing Market

At www.nerjawithsanna.com, we usually focus on what’s happening right here in our beautiful corner of the Costa del Sol. But every now and then, it’s important to zoom out and take a look at what’s happening across Spain, because national trends always find their way to Nerja sooner or later.

Whether you're buying, selling, or just keeping an eye on the market, understanding the bigger picture helps you make smarter decisions locally. So let’s break down what’s going on in the Spanish housing market, and why it matters for anyone interested in property in Nerja.

Spain’s housing market is evolving—here’s what buyers should know.

A Market Defined by High Demand and Low Supply

According to Lázaro Cubero, Head of Analysis at Tecnocasa, the Spanish housing market in 2024 saw a 39% increase in buyer demand compared to the previous year. Meanwhile, the number of homes available for sale dropped by 9.3%.

This supply-demand imbalance has driven prices upward. In just the second half of 2024, prices rose by 12.13%, bringing the average cost per square meter to €2,802, the highest since 2005.

Homes Are Selling Faster Than Ever

Despite rising prices, properties are flying off the market.

In 2024, homes took an average of just 73 days to sell, the quickest pace on record. In big cities like Madrid and Barcelona, it's even faster: 60 and 68 days, respectively.

Over 55% of homes now sell in less than six months. Those that take longer tend to be overpriced—often by around 17% above market value.

Who’s Buying (and What Are They Looking For)?

Today’s typical buyer profile is:

• Aged 35–44

• Single

• Searching for a three-bedroom home

• Purchasing a primary residence

• Using bank financing (in 65.7% of purchases)

One key shift: investment purchases are decreasing—they made up just 25.5% of transactions in 2024, down from 28.4% in 2023.

Mortgages and Pricing Trends

The average mortgage taken out in late 2024 was €132,457, up 14.5% from the year before. Appraisal values also increased to an average of €2,642 per square meter.

Is There Still Room for Negotiation?

Yes, while the market is active and competitive, there’s still room to negotiate. On average, buyers are securing discounts of around 7.3%, similar to the period of recovery after the 2008 crisis.

Final Thoughts

While Nerja always has its own local rhythm, the national housing trends eventually show up here too. Whether it's tighter supply, faster sales, or changing buyer profiles, we’re seeing more and more alignment between Spain’s major cities and smaller coastal towns like ours.

So if you’re thinking of buying or selling in Nerja, now’s a great time to pay attention to the broader market, because understanding what’s happening across Spain can give you the edge right here at home.

Looking for a property in Nerja?

As your dedicated property shopper, we work exclusively for you, finding the right home, saving you money, and protecting your interests. Send us a message, and we will get back to you in 24h: nerjawithsanna@gmail.com

Spain’s property market shifts are creating new opportunities also in coastal areas.