Real Estate Market: Unexpected Shifts
While the average price of resale housing in Spain has risen by nearly 16% over the past year, certain municipalities are showing the opposite trend. In these towns and cities, prices for apartments and houses are not just stagnating—they are plummeting, surprising even seasoned market analysts.
According to recent data, in the last 12 months, ten municipalities across six autonomous communities have recorded housing price drops of 13% or more. This turn of events raises important questions: what is happening in these local markets, and why have these particular areas come under the spotlight?
Leaders in Decline: Who Tops the List
The biggest price drops were seen in Torreperogil (Jaén province) and Arroyo de la Luz (Cáceres), where home values fell by 21% over the year. They are followed by two Galician cities—Allariz (Ourense) and A Estrada (Pontevedra)—with decreases of 16% and 15%, respectively.
Rounding out the top five is Campoo de Enmedio (Cantabria), where housing became 14% more affordable. In sixth place is Cotobade (Galicia), with a similar decline. The other four municipalities—Mojados (Valladolid), El Carpio (Córdoba), as well as Alguazas and Abarán (Murcia)—all posted a 13% drop.
Falling Prices Across Spain: Where Else Is Housing Becoming Cheaper?
Interestingly, the trend towards lower prices has affected not only the leaders of the anti-ranking. A number of other regions in Spain have also seen noticeable drops, albeit not as dramatic. For example, in Lloseta in the Balearic Islands, housing prices decreased by 12%. The same figure was recorded in Arcas del Villar in Cuenca and Cabrera de Mar in the province of Barcelona.
In Rafol de Almunia in the Valencian Community, prices fell by 11%. In Tineo in Asturias, the decline was 9%, in Mungia in the Basque Country — 8%, and in Santa Úrsula in Tenerife — 7%. In Navarre and La Rioja the drop was more modest: in Corella — 6%, and in Castañares de Rioja — just 2%.
Exceptions to the rule: where prices remained almost unchanged
Curiously, in some regions of Spain, there was not a single municipality where housing prices fell. In such cases, analysts highlight towns with minimal growth. For instance, in Caspe in Zaragoza and Brunete in the Madrid Community, prices increased by only 1% — the lowest growth among all localities surveyed.
This situation indicates that even amid a generally rising market, certain areas can show resilience or even a decline in prices. The reasons vary, ranging from demographic changes to local economic factors.
What influences price trends
Experts note that such sharp fluctuations in housing prices are driven by a range of factors. Some municipalities are experiencing population decline, while others see reduced demand due to economic challenges or changes in infrastructure. At times, the emergence of new real estate developments affects the situation by increasing supply and putting downward pressure on prices.
At the same time, in large cities and tourist destinations, demand remains strong, which continues to drive up the cost per square meter. However, in peripheral areas and smaller towns, the situation can shift dramatically within just a few months.
A word about the company idealista
As RUSSPAIN previously reported, idealista is one of the largest online real estate search platforms in Spain, Italy, and Portugal. Founded in 2000, the company has since become a true market leader. Millions of people use its platform daily to search for property to buy or rent. In addition to listings, the service offers analytical reports, tools for property valuation, and market trend data.
In recent years, idealista has actively embraced new technologies, including artificial intelligence and big data, to make property searches as convenient and transparent as possible. The company partners with agencies, banks, and private sellers, giving them access to a broad audience. As a result, idealista has become not only a platform for transactions, but also an important source of information for market professionals and individuals alike. In 2021, the service was acquired by the international investment group EQT, enabling it to expand its presence in the European market. Today, idealista continues to grow, offering new solutions for buyers, sellers, and investors.
