According to the latest report by the Organisation for Economic Co-operation and Development (OECD), the Murcia region has been identified as one of the top areas with the highest increase in housing costs. Over the past few years, real estate prices in this part of Spain have been rising rapidly, impacting both the rental market and homeownership affordability for local residents.
Experts attribute this trend to several factors, including growing demand for housing, limited supply, rising construction costs, and increased interest from foreign buyers.
Housing Price Trends in Murcia
📈 The average housing price in Murcia has surged significantly over the past five years. According to the OECD report:
- In 2019, the average price per square meter ranged from €1,200 to €1,500.
- By 2022, prices had risen to €1,700–2,000 per m².
- In 2024, the cost has reached €2,200–2,500 per m², marking a 30–50% increase over five years.
The most significant price increases have been recorded in cities and coastal areas, which are popular among tourists and foreign buyers.
- Murcia (city center): Average price per m² €2,400 (+35% in five years).
- Cartagena: €2,200 per m² (+32%).
- La Manga del Mar Menor: €2,800 per m² (+45%).
The highest price increases are occurring in areas where tourism infrastructure is expanding and demand for second homes is high.
Factors Driving Housing Price Increases
✅ Strong demand from foreign buyers
Murcia has traditionally attracted investors from the UK, Germany, France, and Scandinavian countries, who purchase properties for holidays or rental income.
✅ Expansion of tourism infrastructure
The development of better roads, airports, and new hotel complexes makes the region more appealing to investors.
✅ Rising construction costs
Higher prices for construction materials and labor are contributing to the increasing cost of new developments.
✅ Limited supply of affordable housing
Despite high demand, the construction of new residential developments is not keeping up, pushing prices even higher.
✅ Inflation and macroeconomic factors
General inflation levels, rising interest rates, and economic policy changes are also affecting the real estate market.
Rental Market: How Are Prices Changing?
The increase in housing prices has also led to a surge in rental costs.
- Average rent for a 70 m² apartment in central Murcia – €850–1,200 per month (30% higher than in 2019).
- In coastal areas like La Manga, rental prices have risen to €1,500–2,000 per month during peak seasons.
- Studios and small apartments (30–40 m²) in the city center – €600–800 per month.
As a result, local residents, especially young people and families, are struggling to find affordable housing options.
What Are the Expected Market Consequences?
📌 Decreased housing affordability
Rising prices are making homeownership increasingly difficult for middle-income families and young professionals.
📌 Shift toward investment properties
A growing number of properties are being bought not for primary residence but for rental income or resale, reducing the availability of homes for local buyers.
📌 Growth in new residential developments
Developers are expected to increase housing construction to meet the rising demand over the next few years.
📌 Possible slowdown in price growth
Experts predict that price growth may slow down over the next 2–3 years if economic conditions worsen or interest rates continue to rise.
Conclusion
📌 Murcia has become one of the top regions in Europe with the highest housing price growth, as confirmed by OECD data.
📌 High demand, limited supply, and active investment continue to drive prices upward, making homeownership more challenging for locals.
📌 If this trend persists, housing affordability in the region may decline further, requiring intervention from the government and developers to stabilize the market.
Murcia’s real estate market remains attractive to investors, but for local residents, the situation is becoming increasingly difficult. 🏡📈
