If your regular home seems expensive, you can't even imagine one on the beach: the square meter already costs an average of 2,650 euros.

Foto del autor


Buying a second home on the Spanish coast is becoming more and more expensive. It is very difficult to find apartments for less than 100,000 euros and it is an impossible task to enjoy sea views or be relatively close to the sand at that price. The price of holiday homes continues to rise and the worst thing is that price adjustments are not expected on any beach in the short term, among other things because there is a shortage of supply and a demand that remains active, especially from foreigners. If they do occur at any point, “they would be a minority and not very relevant,” according to the appraiser Tinsa. Housing in coastal municipalities, considering first and second homes, rose by 5.7% year-on-year in the first quarter of 2024, to 1,740 euros per square metre, compared to the 3.3% average increase in housing prices in Spain in this period, according to the latest statistical analysis by Tinsa. If only holiday homes are taken into account, the price increase was somewhat lower, 3.9% year-on-year, to 2,650 euros per square metre, according to the conclusions of the survey of the appraiser's technicians. “This points to an increase in tensions in the first-home market in a context of an increasingly less differentiated residential product that allows its transfer to holiday homes, whether through sale or rental,” explains Cristina Arias, director of the appraisal group's Research Service. The Tinsa report divides the Spanish coast into 51 zones. In 54% of them, the price of a second home is higher than that of a first home: it is between 5% and 300% higher. In the remaining 46%, the price of both products is at the same level. “First homes are increasing their prices to match those of holiday homes,” adds Arias. Despite the constant price increases, we cannot speak of a bubble on the beach, at least in a general sense. There are no signs of overvaluation, except in specific and minority areas both on the islands and on the Mediterranean coast. A clear example is Ibiza, where the situation is extremely tense. Although the alarm bell has not been activated, the truth is that the rise in prices has eliminated the few bargains that remained. Flats and apartments have average prices between 1,200 and 8,000 euros per square metre, although the majority are concentrated between 1,200 and 3,200, according to Tinsa. Terraced and detached houses are more widely distributed, with prices ranging from €1,000 to €12,000 per square metre, although the highest concentration is between €1,100 and €2,800. “The largest volume of sales is concentrated in second-hand homes, which have a price range of between €150,000 and €200,000,” says Alfredo Millá, CEO of the real estate proptech Sonneil. Those looking for new-build homes will have to raise their budget to €250,000 or €300,000. The beachfront is extremely limited and prices can even triple, adds Millá.

From Ibiza to Roquetas

Distance and area. The final bill will depend on this. The highest prices for holiday homes are found in the Balearic Islands, with strong international demand. “The average price for homes in coastal municipalities is 6,500 euros per square metre, 4,500 euros in Menorca and 9,000 euros in Ibiza and Formentera, compared to an average general price of housing in coastal municipalities of 2,986 euros per square metre and an average price for the entire province of 2,934 euros,” according to Tinsa. The Costa Brava is also expensive, where a second home costs around 3,700 euros per square metre, as well as some areas of Cádiz (Sotogrande, 3,450 euros) and Málaga and its surroundings (4,000 euros between Marbella and Manilva). At the lower end, with mainly national demand, are O Grove and Vilagarcía de Arousa (1,300 euros per square metre), some areas of Almería (at 1,350 euros between Roquetas de Mar and Adra) and Murcia (1,400 euros in La Manga del Mar Menor). The rise in holiday home prices has a lot to do with the fact that development activity in coastal municipalities contracted by 22.9% in 2023. This perpetuates the shortage of supply and, in fact, there is already a lack of available land. Meanwhile, the demand for holiday housing remains active. It should not be forgotten that these are solvent buyers, that many of them are foreigners, and that purchases for rental purposes have increased. In 30% of coastal areas, sales are mainly made for this purpose, according to Tinsa. “The growth of tourism, the start of the summer season and the gradual improvement of the economy make investing in a second residence on the beach a good opportunity for both investors and individuals,” says the real estate services firm Solvia. The developer is clear about this and, given that it is a product that is sold at a higher price, he prioritises the construction of holiday homes. A market in which things like those described by Millá happen: “A developer, in the last six months, has raised the price by up to 97% since the launch, although this was a few years ago.” Nor will renting a beachfront apartment for this summer be within everyone’s reach: a week this year costs 9.95% more than last year, so you have to prepare 1,160 euros on average, according to a recent study by Tecnitasa. The offer on the beachfront is very wide: from 3,300 euros per week in Portocolom (Balearic Islands) to 500 euros in Moncófar or Vinaroz, in Castellón. The communities that have increased in price by more than 12% are Cantabria, the Canary Islands and Lugo. On the beach at Comillas, for 70 square meters people are paying almost 1,900 euros per week. Follow all the information on Economy and Business on Facebook and Twitter. Xor in our weekly newsletter