The typical value of property acquisitions has risen over the past year above the national average, which has increased by 3.1% in 55 of the 86 relevant municipalities that are not provincial capitals, excluding the cities of Madrid and Barcelona. In this context, La Laguna (Tenerife) stands out as one of the areas where property prices have surged most significantly, with a rise of 11.4% according to a report from the appraisal firm Tinsa.
This analysis shows that the most substantial increases in these municipalities, characterised by high populations, are found in locations identified as tourist spots, such as the coastal regions of Cádiz, the Mediterranean arc, and the Canary Islands, followed closely by the metropolitan zones of Madrid and Barcelona.
The most pronounced increases have emerged in the towns of Chiclana de la Frontera, which saw a rise of 13.6%, and Marbella, with an increase of 12.1%. This is followed by San Cristóbal de La Laguna in Santa Cruz de Tenerife, recording an increase of 11.4%, and Benidorm, which experienced an 11% rise.
Conversely, the most notable declines were observed in Elda, which fell by 2.8% compared to last year, and Portugalete, with a reduction of 1.4%.
QUARTERLY TREND
Focusing on the third quarter’s progression, 46% of the municipalities are trending towards stabilization, while 49% have experienced price increases.
The range of quarterly fluctuations spans from +4.6% to -2.5%, with the towns that topped the list for price increases including Benidorm, San Cristóbal de La Laguna, and Torrevieja. In contrast, the municipalities that have seen the steepest declines in prices are Alcoy, Algeciras, Elda, Ripollet, and Portugalete.
PURCHASE EFFORT
40% of the 86 municipalities deemed significant by Tinsa exceed the reasonable threshold for the theoretical burden their inhabitants shoulder when it comes to mortgage payments, meaning they allocate more than 35% of their income to monthly mortgage payments.
In this regard, the municipality that demands the most effort is Marbella, where 75% of its citizens’ earnings are dedicated to housing costs, while on the opposite end, Alcoy demonstrates a theoretical effort of 20%.
Areas with efforts surpassing 45%, identified as critical, are predominantly found in Marbella, Benidorm, Torrevieja, Madrid, Sanlúcar de Barrameda, and Sant Adrià del Besòs.
Meanwhile, those municipalities that must devote between 35% and 45% of their income to mortgage payments are mostly situated within the influence of Barcelona and Madrid, including Vigo, Irún, Motril, Portugalete, Gijón, and Barakaldo.
PRICE IN COMPARISON TO THE CAPITAL AND THE PROVINCE
The overwhelming majority of these towns, 92%, feature prices that are below those of their corresponding provincial capitals, with price differences reaching up to 61% lower, as exemplified by Manresa in relation to Barcelona.
Furthermore, there are notable exceptions where prices exceed those of the capital, such as in Vigo (26%), Marbella (22%), Benidorm (15%), and Gijón (11%). Pozuelo de Alarcón presents a price just 0.2% lower than that of Madrid city, aligning closely with its capital’s price level.
In addition, 34% of these municipalities showcase prices that are higher than the average in their province, although in this case, the values vary broadly, oscillating from 49% above to 45% below the average prices based on the respective municipality analysed.
Among these areas, Barcelona stands out with an average price 49% above that of the province, followed by Marbella, which is 32% higher. Other municipalities of note include Vigo, Madrid city, Pozuelo de Alarcón, Benidorm, and El Puerto de Santa María, with price differentials ranging from 24% to 32% above their provincial averages.
