Property prices in Almuñecar are among the highest in Granada province, raising fresh concerns about affordability for local families and foreign residents hoping to buy a home.

Almuñecar has been identified as the most expensive town on the Costa Tropical for property purchases, with prices reaching €2,382 per square metre during the first quarter of 2026, according to figures reported by Granada Hoy. Today, the value is even higher and according to the latest September figures, the price has soared up to a whopping €3,293 per square metre.

The figure puts the coastal town ahead of Granada City, where the average stood at €2,258 per square metre. Across the Costa Tropical, the average was €1,829, while the provincial average was considerably lower at €1,467.

For anyone hoping to buy a permanent home in the area, the difference can add up quickly. An 80-square-metre property priced at €3,293 per square metre would cost around €263,440 before taxes, legal fees and other purchase costs.

Almuñecar property prices continue to climb

These figures come from an independant property-market index, so they should not be treated as a direct continuation of the first-quarter figures reported by Granada Hoy. However, they point to continued pressure on the local housing market.

Almuñecar’s appeal to international buyers, second-home owners and people seeking a Mediterranean lifestyle adds to demand for properties in the area. Its beaches, climate and established international community make it attractive to people looking for holiday homes or a permanent move to southern Spain.

What does this mean for local families?

Rising property prices can make it harder for younger residents and families on local salaries to buy in the town where they grew up. Foreign residents looking to settle permanently may also find that their budgets stretch less far than expected.

The issue is not limited to buying. Rental costs also affect people who cannot afford to purchase a property, particularly those looking for long-term accommodation rather than a holiday let. Although the figures alone do not establish what is driving prices, the gap between Almuñecar and the wider province raises questions about how accessible housing remains for people who live and work locally.

For prospective buyers, the challenge is finding a property that fits their budget in a market where advertised prices are rising. Do you think property prices in Almuñecar have become too expensive?

Spanish house prices continue to climb, but the total value of sales has barely increased despite the market more than doubling in size over the last decade. Are buyers finally reaching their limits?

Spanish house prices continued climbing in the first half of 2026, but the total value of homes sold barely increased. The latest figures from the Ministry of Housing suggest a market increasingly constrained by affordability, with prices still rising strongly even as sales lose momentum.

The latest figures from Spain’s Ministry of Housing show the average price of a residential property sold in the first half of 2026 reached €225,493, up 9% compared to the same period last year. New homes averaged €300,910, whilst resale properties averaged €217,956.

The figures confirm that house prices are still rising strongly, particularly in the resale market, despite signs that demand is beginning to cool.

House prices have risen by more than 50% in a decade

Over the last ten years, the average price of all homes sold has increased by 51%, with new-build prices rising 76% and resale prices 61%.

One interesting development is the narrowing gap between new and resale prices. In 2024, new homes sold for an average of 58% more than resale properties. By H1 2026, that premium had fallen to 38%.

One possible explanation is that buyers are increasingly being priced out of new developments and forced to compete for existing homes. With demand outstripping supply and household budgets stretched, buyers may be paying more for resale properties because they have little choice. Most would probably prefer a new home if they could afford one, but the market doesn’t always offer what buyers want at a price they can pay.

Market value stalls despite rising prices

The total value of residential property transactions in Spain reached €38.7 billion in H1 2026, compared to €38.4 billion a year earlier. That’s an increase of just 0.6%, despite average prices rising by 9%.

Over the last decade, the market has more than doubled in value, from €15 billion in H1 2016 to almost €39 billion today. But the latest figures suggest that growth is running out of steam.

If prices are rising by 9% whilst the total value of transactions is virtually unchanged, the implication is that fewer homes are changing hands, or that the mix of properties sold has shifted towards cheaper homes, or both.

Higher prices are clearly making homes less affordable, whilst rising borrowing costs and political uncertainty may also be weighing on demand.

What does this mean for buyers and sellers?

The Spanish housing market appears to be moving into a new phase. Prices are still rising strongly, supported by a chronic shortage of supply, but transaction values suggest buyers are increasingly struggling to keep up.

For sellers, this may be a good time to consider going to market whilst prices remain high, rather than waiting for demand to weaken further. For buyers, there is little sign of a price correction just yet, but the slowdown in market activity could eventually improve their negotiating position.

The key question for the second half of 2026 is whether sales can stabilise without a significant correction in prices. For now, the market looks more like a slowdown than a slump.