Where to buy in Spain: the most sought-after spots

The sun is shining in Spain – and not just in the meteorological sense. As well as the golden light that spreads across popular coastlines and majestic cities, the glow of an upturn is boosting the country’s economy, the latest Savills research reveals.

The Spain Prime Residential 2024 report shows that the country outperformed expectations in 2023, with annual GDP growth of 2.5%, against a forecast of 1%. With tourist numbers on the rise and a prime property market demonstrating resilience, Spain’s position as a solid favourite for global buyers looks secure.

The report drills down into the details of city and resort destinations where prime properties consistently attract international buyers. It’s not hard to understand the appeal: Spain’s climate, history, architecture and international connectivity are all world-class. So, whether you want to view the works of Goya and Velázquez in Madrid or tuck into paella in Valencia, which are the most sought-after locations in which to buy?

In the first half of 2024, prime properties in Madrid and Barcelona offered the best value, in terms of price per square metre, of the European cities analysed in the Savills Prime Residential Index. That was despite their strong growth, in the year to June 2024, of 5.4% and 3.3% respectively.

Madrid
Spain’s capital is an economic and cultural powerhouse, with a trinity of magnificent museums headed by the Prado. Personal tax levels are the lowest in Spain and an increasing number of international purchasers from the Americas are discovering the city’s pleasures, buying classical apartments in Recoletos and Jeronimos, beside the green beauty of El Retiro Park.

Barcelona
Barcelona is a well-established international favourite: the city by the sea loved for Antoni Gaudí’s flamboyant architecture, its Mediterranean coastline and a food-focused lifestyle. A shortage of new-build properties has led to rental price increases of more than 50% over the past five years.

Seville
A growth in tourism fuelled a 6% increase in Seville’s mainstream property prices in 2023. Yet they remain well below the levels seen in Madrid and Barcelona, with rental prices per square metre slightly below the average for Spain. Few places can rival the Andalusían capital for lifestyle. From wines and tapas to flamenco and fiestas, it packs an authentic and invigorating Spanish punch.

Valencia
As the European Green Capital 2024, Valencia has worked hard on its sustainability credentials, and this has contributed to its popularity with international owners, who account for nearly 20% of the city’s inhabitants. Rental prices here have risen by 60% since 2018, yet still represent good value compared to most of the other cities mentioned in the report. The average mainstream property price in Valencia is €2,600 a square metre, just above Seville (€2,300) and the Spanish average (€2,100).

Málaga and Marbella
These two seafront hotspots on the Costa del Sol are the resorts in which prices have risen most steeply over the past five years, with increases of 43% and 56% respectively. Marbella tops the chart for average mainstream home prices, at €4,800 a square metre, though the finest properties on the glitzy Golden Mile far exceed this. Almost 40% of buyers in Marbella are international, underlining the global allure of its well-stocked marinas, five-star restaurants and glamorous lifestyle. The average mainstream property price in Málaga is €3,000 a square metre, while rental prices have soared by 49% in five years – one of the highest increases in Spain.

Sotogrande
Sotogrande is “a true prime residential development in its own right combining natural beauty with top amenities and lifestyle”, says the Savills report. Limited development opportunities and the resort’s low-density planning programme have maintained its exclusivity – a global community comes here to enjoy golf, polo, tennis, watersports, cycling and padel at exceptionally well-maintained facilities. The average prime house price here is €4,300 a square metre.

Balearic Islands
These islands, particularly Ibiza and Mallorca, are happy hunting grounds for international buyers who appreciate the mix of natural beauty and lively local life. Prices in Mallorca’s buzzy capital, Palma, have risen by nearly 7% in the past year – and 41% over the past five. Ibiza has seen a 16% increase in the past 12 months, a testament to its continuing popularity. All of which serves to illustrate why the Spanish market continues to thrive.

Read the full Savills Spain Prime Residential 2024 report

Savills Prime Residential Index: World Cities H1 2024