San Cristóbal de La Laguna, located in Tenerife, has emerged as one of the Spanish municipalities where property prices have surged the most in recent years. A new report from the appraisal company Tinsa highlights an 11.4% rise in housing prices in La Laguna, marking it as the third-highest increase among all non-provincial capitals in Spain.
National Trends in Housing Prices
Nationally, the average price of homes increased by 3.1% in the last year, with property prices rising in 55 of the 86 municipalities deemed significant due to their population or relevance, such as tourist hubs and urban areas. Tourist destinations, particularly along the coasts of Cádiz, the Mediterranean, and the Canary Islands, have experienced the most dramatic price hikes, followed by metropolitan areas like Madrid and Barcelona.
Top Municipalities for Price Growth
La Laguna’s significant growth in housing prices places it just behind Chiclana de la Frontera (13.6%) and Marbella (12.1%). Benidorm follows closely with an 11% increase. These towns, particularly in high-demand tourist areas, continue to attract interest, driving up property values.
Conversely, some municipalities, like Elda and Portugalete, saw declines in housing prices, with drops of 2.8% and 1.4%, respectively.
Quarterly Trends
In the third quarter of the year, 46% of municipalities reported price stability, while 49% saw increases. The quarterly variation ranged from a 4.6% rise to a 2.5% decline. Among the municipalities with the highest quarterly increases were Benidorm, La Laguna, and Torrevieja. On the other end, Alcoy, Algeciras, and Elda experienced the most significant price declines.
Housing Affordability and Effort Levels
In terms of affordability, 40% of the studied municipalities exceed the standard “reasonable effort” threshold, where citizens spend more than 35% of their income on mortgages. Marbella leads in this metric, with residents dedicating 75% of their income to housing costs. In contrast, Alcoy residents spend just 20% of their income on housing.
Municipalities where over 45% of income is allocated to mortgages, considered a critical level, include Marbella, Benidorm, Torrevieja, Madrid, and Sanlúcar de Barrameda. In contrast, areas like Vigo, Irún, Motril, and Barakaldo fall in the 35%-45% range.
Price Comparisons with Provincial Capitals
The majority (92%) of these municipalities have housing prices lower than their provincial capitals. For instance, Manresa’s prices are 61% lower than those in Barcelona. However, there are exceptions, such as Vigo, Marbella, and Benidorm, where prices are 26%, 22%, and 15% higher than their provincial capitals, respectively.
Additionally, 34% of these municipalities boast higher average prices than their respective provinces, with Barcelona and Marbella standing out with prices 49% and 32% above their provincial averages. Other notable municipalities in this category include Madrid, Vigo, and Pozuelo de Alarcón.
The housing market in La Laguna reflects broader trends in Spain, where tourism and urban expansion continue to drive property prices upward. With an 11.4% increase in house prices, the town solidifies its position as a growing and in-demand area, contributing to its appeal both as a residential hub and a tourist destination. However, the rising costs also highlight the challenges of affordability for residents, a trend echoed across many high-demand areas in Spain.
