Spanish coastal housing prices rise 13.5% amid high vacation demand

Housing prices along the Spanish coast rose by 13.5% year-on-year in the first quarter of 2026, reaching an average of 1,992 euros per square meter. This surge is driven by a shortage of supply and a strong demand for vacation properties, which are priced significantly higher than the national average.

This trend has created severe affordability challenges for local residents. The financial effort required to purchase a home in coastal areas has reached 40% of the average household's disposable income, exceeding the recommended 35% threshold. The tension is most acute in the Balearic Islands, where the effort reaches 59%, followed by Málaga at 57% and Alicante at 46%. In Formentera, the effort to secure a mortgage can reach as high as 116% of disposable income.

In Alicante, property prices hit a historic high of 2,705 euros per square meter in July 2026. While the city's growth is slower than the national average, a significant gap has emerged between premium coastal districts and more affordable neighborhoods. Additionally, rental costs in Alicante consume approximately 38% of a typical family's net income.