Coastal Housing Market Analysis - First Quarter 2025

Coastal Housing Market Analysis - First Quarter 2025

  • The technical network of Tinsa by Accumin places the year-on-year increase in second home prices on the coast at 12.1% (€2,970/m²) in the first quarter of 2025, driven by the concentration of new construction in the vacation segment and supply shortage.
  • Including primary residence (first home), the average price on the coast grew 7.2% year-on-year, close to the national average (7.8%). 
  • The coasts of Málaga (+14.3% year-on-year), Pontevedra (+11.2%), and Santa Cruz de Tenerife (+10.8%) show the highest year-on-year increases in housing prices, according to first and second home valuations. 
  • Up to 32 coastal municipalities exceed bubble-era peaks. Discounting the effect of inflation (real prices), only five municipalities in the Balearics are at series highs. 
  • Property transactions (+7.2%) and new construction permits (-2.1%) on the coast maintained high activity levels in 2024, but reduced their weight in the national total due to demand activation in employment centers.

Housing prices on the Spanish coast have accelerated their growth in a context of moderating interest rates, employment maintenance and accumulated savings, and increased tourism. The average value in the residential market (first and second homes on the coast, excluding provincial capitals) accelerated in the last year to reach 7.2% year-on-year in the first quarter of 2025, according to valuations conducted by Tinsa by Accumin.

The increase was more intense in the specific vacation housing segment. The technical network of Tinsa by Accumin places second home values at €2,970/m², 12.1% higher than a year ago. This figure results from the greater concentration of new construction in this segment, oriented in recent years toward demand with higher purchasing power.

These are some of the data and conclusions reflected in the report 'Coastal Housing 2025,' prepared by the real estate valuation and consulting company Tinsa, with information on prices, supply, and demand for finished housing in more than 250 coastal municipalities. To analyze the pulse of the second home segment (vacation housing), Tinsa relies on the experience of its network of local technicians in the 51 coastal areas covered in the report. Each area consists of a grouping of municipalities from the same province.

Cristina Arias, director of Tinsa by Accumin's Research Department, highlights that, given the limited supply of available housing, a significant number of areas show how primary residence demand is displaced by the higher purchasing power of second home demand and the greater profitability offered by the vacation segment.

"This raises average prices and reduces the available housing supply on the coast. In this context, it becomes key to integrate the need for primary housing with vacation use and tourism dynamics in a sustainable way," explains Cristina Arias, director of Tinsa by Accumin's Research Department.

This translation maintains the technical accuracy and professional tone appropriate for real estate market analysis while clearly conveying all the statistical data and expert insights from the original Spanish report.

Contact me by email - barry@ultimatehomes-spain.com - if you would like to receive a pdf version of the report.

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