Prices have been overall on the rise in Spain since their recovery from the financial crisis with the average price increasing by around 24% since 2014. However, despite this steady growth in the last 10 years the housing price index is still below pre-financial crisis level by 2%. Compare to the UK where house prices are over 60% higher compared to 2007.
Spanish property prices have huge disparity between each autonomous community with Madrid coming in at the higher end of the scale and the south of Spain Costa Blanca tend to come at a below national average price depending on the exact location.
Is Spanish Property Affordable?
With £300,000, which is the average house price in England, in London you are often able to buy a 1-bedroom apartment in a less than prime location. For the same amount of money in a prime location in the south of Spain you would be able to find a 3-bedroom house with a swimming pool.
The table below shows the average price of properties in their respective areas.
| Location | 1 Bed-room apartments | 2/3 Bed-room apartments | 3 Bed-room townhouses |
| London | £289,300 | £579,930 | £1,328,400 |
| Torrevieja | £76,400 | £140,300 | £210,000 |
| Orihuela Costa | £78,000 | £133,000 | £200,000 |
| Madrid | £216,500 | £293,800 | £760,220 |
| Alicante | £86,000 | £128,900 | £183,000 |
As shown above properties in Spain are extremely affordable in comparison to properties in London, coming in at 40% cheaper per square meter. Spain is also often able to offer a wide range of properties with various amenities such as pools, large outdoor space, and proximity to the beach, each factor effecting the price.
Costs of living in Spain
Along with more affordable property prices the cost of living in Spain is also far lower than the UK. Eating out in a restaurant is on average 29% cheaper to an equivalent restaurant in the UK and the average grocery shop is often around 20% lower.
However, the large cost that is a lot cheaper in Spain than in the UK is the utility bill where on average basic unities expats spend 40% less in a Spanish property. This is partly because Spain experienced lower inflation levels than most of its European counterparts.
