High Housing Costs in Balearic Islands: A Study by Idealista
A recent study by Idealista reveals that seven out of ten municipalities in the Balearic Islands are among the most expensive places to buy a home in Spain. The study takes into account factors such as average household income, property prices, financing costs, and the need for substantial savings.
Andratx: The Most Expensive Town in Spain
The study identifies Andratx, a town in the Balearic Islands, as the most expensive place to buy a home in Spain. Here, housing costs account for a staggering 91% of the average household income. Other towns in the Balearic Islands, such as Santa Eulalia del Río in Ibiza, Calvià in Mallorca, Eivissa, and Sóller in Mallorca, also feature high on the list.
Non-Balearic Towns with High Housing Costs
Benahavís and Marbella in Málaga are the first non-Balearic towns on the list, with housing costs consuming 62% of the average household income. Moraira in Alicante follows closely with a rate of 61%. The last two spots are occupied by Campos and Santanyi in Mallorca, both with a rate of 60%.
Least Expensive Towns to Buy a House in Spain
On the other end of the spectrum, there are towns where the cost of buying a home is relatively low. Aller in Asturias, Puertollano in Ciudad Real, and Tortosa in Tarragona stand out as the least expensive, with families needing to allocate just 6% of their income to purchase a house.
Other Affordable Towns in Spain
San Martín del Rey Aurelio in Asturias is the fourth least expensive town, requiring a 7% effort. Other towns such as Caravaca de la Cruz in Murcia, Linares in Jaén, Valencia de Don Juan in León, Mieres del Camino in Asturias, and Manzanares in Ciudad Real each require an 8% effort. Lena in Asturias completes the list with a 9% rate.
Significant Differences in Housing Costs Across Spain
The study also highlights the significant differences in housing costs across different communities in Spain. For instance, the most expensive market in the Balearic Islands (Andratx) is nearly 75 points higher than the most expensive market in Extremadura (Badajoz, with 17%).
Lowest Housing Costs in Balearic Islands and Asturias
In terms of markets with the lowest housing costs, the differences are less pronounced. In the Balearic Islands, Inca requires 28% of household income, whereas in Asturias, the lowest effort rate is seen in Aller, requiring just 6%.
Methodology of the Study
The effort rate used in the study measures the impact of home ownership on a household’s purchasing power. Idealista/data calculates the effort rate as the annual portion of a household’s net income allocated to repaying a typical mortgage. The home price is based on the median value of a two-bedroom property, while data on net family income is sourced from the Spanish Institute of Statistics (INE).
About Idealista/Data
Idealista/data, Idealista’s proptech, compiles and analyses data to facilitate strategic decision-making in Spain, Italy, and Portugal. It uses all the Idealista database parameters in each country and other public and private data sources to offer valuation, investment, recruitment, and market analysis services.
