Buying a two-bedroom home in Spain remains significantly cheaper each month than renting one.
New data from Idealista shows the average monthly mortgage payment for a two-bedroom property in Spain is around €698, compared with €1,088 for renting a similar home.
That means mortgage payments are roughly 36% cheaper than rent.
However, buyers still face a major obstacle before they can even apply for a mortgage: the savings required for the deposit and purchase costs.
On average, buyers need around €64,568 in savings to secure a mortgage in Spain. This typically covers the 20% deposit required by banks plus around 10% in taxes and transaction costs.
In the most expensive cities, the amount needed is far higher.
Palma in Mallorca tops the list, where buyers need an estimated €147,116 in savings to purchase a home.
San Sebastian follows with €137,700, while Madrid requires around €117,793 and Barcelona €103,172. These are the only cities where buyers need more than €100,000 upfront.
Several other major cities, including in Andalucia, also require savings well above the national average.
In Malaga, buyers need around €96,651 before they can access financing. In Cadiz it’s €68,159 and in Granada €67,681.
Valencia requires €77,503, Pamplona €76,240 and Bilbao €73,448.
Other cities above the national average include A Coruña (€71,861), Vitoria (€70,366), Santa Cruz de Tenerife (€70,057) and Alicante (€69,500),
At the other end of the scale, some cities require far less savings to buy a property.
Zamora has the lowest entry cost, with buyers needing about €32,996 – roughly half the national average.
Other relatively affordable cities include Jaen (€34,596), Lleida (€35,581), Palencia (€35,931) and Badajoz (€37,862).
Cordoba and Huesca also remain below €40,000 in required savings.
Despite the high upfront costs, buying remains cheaper than renting in almost every Spanish provincial capital once a mortgage is secured.
San Sebastian is the only city where mortgage payments are actually higher than renting, with loan repayments about 10% more expensive than rent.
In most cities, the gap strongly favours buying.
Among Spain’s biggest housing markets, Valencia and Barcelona show some of the largest savings for buyers, with mortgages around 38% cheaper than rent.
Sevilla, the capital of Andalucia, follows with a 36% difference, while Bilbao shows a 33% gap and Alicante 32%. In Malaga, the gap is 16%.
Read more Andalucia news at the Spanish Eye.
