The price of holiday homes on the Spanish coast rose by 12.1% in Q1 compared to the same period last year, reaching an average of €2,970 per m². This increase is attributed to a higher concentration of new developments aimed at buyers with greater purchasing power in recent years.
This rise surpasses the 7.2% increase in general coastal housing prices during the same period, according to the "Coastal Housing 2025" report prepared by Tinsa and Accumin.
Price rises for second homes were highest in the Balearic Islands (Ibiza, Formentera, Mallorca, Menorca), Gran Canaria, Costa Brava and Lanzarote. Areas with mainly domestic demand include parts of Tarragona, Lugo and La Manga del Mar Menor.
Appraisers say prices in 94% of these areas still have room to grow. However, in locations like Tarragona, Ibiza, Formentera, Cádiz, Gran Canaria and Vizcaya, prices may be nearing their peak due to saturated mass tourism markets, according to Andrea de la Hoz, senior consultant at Tinsa by Accumin.
The study also reveals a clear trend of price convergence between holiday homes and regular housing, reflecting an increasingly interchangeable market.
Tinsa notes that second-home development remains stable or is growing in most areas, though progress is constrained by limited land availability, high construction costs and labour shortages.
Meanwhile, 5% of areas, mainly along parts of the Malaga coast, are experiencing a slowdown in development and 12% report no new construction in the second-home sector, relying solely on the resale market.
Second homes on the Spanish coast attract foreign investors
Spain is not only one of the European countries preferred by foreigners to spend the summer, but it is also one of the destinations par excellence for real estate investment, especially in coastal areas. From Sonneil they assure that "the climate, style and costs of living, infrastructure and culture of Spain make it one of the most prosperous residential destinations on the continent." Foreign investment in housing is very prominent in destinations such as Alicante (44%), Santa Cruz de Tenerife