In recent months, Spain has seen a significant shift in the housing market. In a number of cities across the country, monthly mortgage payments are now lower than the cost of renting comparable apartments. This situation is prompting many families to reassess their housing strategies and consider buying property.
Experts note that this trend is emerging against a backdrop of moderate interest rates, which average 2-3% per year, as well as the option to secure long-term loans—up to 30 years. As a result, in most major cities, including Madrid and Barcelona, monthly mortgage payments have become more affordable than rent.
According to analysts, the average rent for an 80-square-meter apartment reached 1,122 euros in August, which is 13% higher than last year’s figures. The rise in rental prices is increasing interest in homeownership, particularly among young families and those planning long-term stays in major cities or along the coast.
However, experts emphasize that despite the attractiveness of mortgage terms, the main barrier for buyers remains the requirement to make an initial down payment. Banks typically require at least 20% of the property’s value upfront, which becomes a significant challenge for many households. Some address this issue with help from relatives or opt for loan products with a higher financing share, but such decisions require careful risk assessment.
Financial consultants advise not to spend more than 35% of household income on monthly loan payments. They also recommend seeking advice from professionals who can help select the best terms and avoid mistakes when choosing a bank or mortgage type.
In the long term, specialists predict continued growth in real estate prices in major cities and coastal regions. Fixed-rate loans are expected to gain popularity due to payment stability. Digitalization plays a key role in this process: modern online services allow for quick comparison of bank offers and help clients choose the most advantageous options.
In a changing market, experts recommend careful budget planning, creating a financial safety net, and avoiding excessive debt. This approach can help maintain household financial stability even if the economic situation changes.
