The average cost of property acquisitions has risen over the past year, surpassing the national average increase of 3.1%, in 55 of the 86 localities identified as significant, excluding provincial capitals, specifically Madrid and Barcelona. Notably, La Laguna (Tenerife) is among the municipalities experiencing the most substantial rise, with an increase of 11.4%, as stated in a report by the valuation firm Tinsa.
The analysis reveals that the most notable price surges in these populous areas are observed in tourist destinations, particularly the coastal regions of Cádiz, the Mediterranean corridor, and the Canary Islands, followed closely by the metropolitan regions of Madrid and Barcelona.
The highest increases were recorded in the towns of Chiclana de la Frontera, which saw a rise of 13.6%, and Marbella at 12.1%. This is followed by San Cristóbal de La Laguna in Santa Cruz de Tenerife, which experienced an increase of 11.4%, and Benidorm with an 11% rise.
In contrast, Elda has witnessed a decline of 2.8% compared to last year, and Portugalete has experienced a decrease of 1.4%.
Quarterly Trends
In terms of trends for the third quarter, 46% of the municipalities are showing signs of stabilisation, while 49% have reported an increase in prices.
The range of quarterly fluctuations lies between +4.6% and -2.5%, with the top increases attributed to Benidorm, San Cristóbal de La Laguna, and Torrevieja. Conversely, the areas with the most significant price reductions include Alcoy, Algeciras, Elda, Ripollet, and Portugalete.
Purchasing Strain
According to Tinsa, 40% of the 86 surveyed municipalities exceed the acceptable threshold regarding the theoretical burden their residents bear in mortgage repayments, meaning that citizens allocate more than 35% of their income towards monthly mortgage payments.
Within this context, the municipality with the highest effort is Marbella, where 75% of the income of its residents is devoted to housing expenses, whereas Alcoy shows a theoretical allocation of 20%.
Areas that exhibit a mortgage burden surpassing 45%, categorised as critical, are primarily found in Marbella, Benidorm, Torrevieja, Madrid, Sanlúcar de Barrameda, and Sant Adrià del Besòs.
Meanwhile, municipalities where residents must allocate between 35% and 45% of their income to mortgage repayments are largely situated within the influence of Barcelona and Madrid, as well as in cities like Vigo, Irún, Motril, Portugalete, Gijón, and Barakaldo.
Price Comparison with Capitals and Provinces
A significant majority, 92%, of these towns have property prices that fall below those of the capitals of their respective provinces, with some areas being as much as 61% cheaper, such as Manresa compared to Barcelona.
Exceptions to this trend are notable, where property prices exceed those of the capitals, for instance, Vigo (26%), Marbella (22%), Benidorm (15%), and Gijón (11%). Notably, Pozuelo de Alarcón aligns closely with its capital, being merely 0.2% less than the price in Madrid.
Furthermore, 34% of these municipalities have property prices that surpass the average price of their respective provinces, although these figures range considerably, from 49% above to 45% below the average values for the analysed municipalities.
Among these areas, Barcelona stands out with an average price that is 49% higher than that of its province, followed by Marbella, which is 32% above. Other notable municipalities include Vigo, the capital of Madrid, Pozuelo de Alarcón, Benidorm, and El Puerto de Santa María, all showing increases ranging from 24% to 32% above their provincial averages.
