Home buyers flock to Spain's villages and small towns

Demand for housing is shifting from large cities to villages and towns in Spain.

This is the trend observed by Alfa Inmobiliaria, which currently has 115 agencies operating in Spain, which claims that the number of people interested in buying a home in villages and small towns and cities has doubled in the past two years. This change is no doubt driven by several economic and sociological factors.

According to Jesús Duque, vice president of the real estate network, "The main reason for this phenomenon is the price of housing in cities, the lack of affordable housing in urban areas and the high cost of living associated with cities in terms of basic items such as transport, food and leisure. The shortage of supply in metropolitan areas is recently leading to an escalation in prices that in too many cases exceeds the purchasing power of a large part of the population, especially among young people and lower-income families". The new-found ease of working remotely is also driving this trend.

As a consequence of this increased residential demand, the company is also seeing a growing interest in setting up a real estate agency in "previously neglected" rural areas.

The most sought-after areas starting at €45,000

The real estate network says that it has started to notice increased demand in Madrid's Sierra Norte and Catalonia's Garrotxa region. "Both areas are well connected to Madrid or Barcelona and have public services and infrastructures that allow commuters to travel quickly to these large capitals when necessary while enjoying all the advantages of living a quieter life, connected to nature," says Duque.

The trend has subsequently spread to many villages in Castile-La Mancha, Extremadura and Andalusia, which, "after years of decline, now offer buyers the chance to purchase spacious homes, while benefiting from being in rural settings, with a rich history and deep-rooted culture which make them extremely attractive," says the vice president of Alfa Inmobiliaria. 

As for prices, the company claims that some of these areas offer properties of around 100 m2 for between €45,000 and €100,000.

"With a budget of €45,000, you can find options, especially in rural areas and with a population of under 2,000 inhabitants. Moreover, in some urban areas, especially in medium-sized cities, you may find small flats or studios at this price, although they may require renovations or be in less central areas," insists Duque.

And as the budget increases, so do the possibilities in terms of size and location. In rural areas, for example, larger houses with a garden or land are available for around €65,000. "In smaller towns or larger villages, with this budget, you can buy flats in better locations or properties that require less work. Moreover, you may be able to access properties with additional features, such as garages or terraces," he says. 

With €100,000, the choices expand significantly, both in terms of space and quality. "In rural areas, with this budget, you may be able to afford larger houses or even properties such as fincas or country houses. In larger towns, you can access spacious flats in prime locations, close to services and other amenities. Moreover, with this budget, you can buy newly renovated properties or those in better condition, reducing the need for investing in improvements," adds Duque.

The real estate network states that they are also detecting an increase in operations in which properties purchased for around €40,000-€45,000, are renovated and resold in a short period for double that amount, often to international buyers.