House prices are continuing to surge in Andalucia and there’s few signs of relief for buyers in the region.

But one province in particular is seeing the cost of buying a home increase more than any other.

New data from Tinsa shows the average price in Granada province – both new and second-hand – has climbed to €1,465 per square metre as of March 2026, representing a sharp 16.3% year-on-year increase.

The surge places Granada among the fastest-rising property markets in Spain, ranking eighth nationwide for annual growth.

It also makes it the most expensive province in Andalucía in terms of price increases, outpacing hotspots like Malaga, Cadiz and Sevilla.

A typical 60m2 home now averages around €87,900 across the province, while a 90m2 property sits at €131,850. Larger homes of 120m2 are pushing close to €176,000.

They are averages across Granada’s 174 municipalities, meaning buyers in high-demand areas such as the metropolitan belt or the Costa Tropical are likely to pay significantly more.

In Granada city itself, prices have surged even harder.

The average now stands at €2,258 per square metre – up 11.8% year-on-year – making it one of the fastest-growing capitals in Andalucia.

That translates to around €135,000 for a small 60m2 flat, rising to more than €270,000 for larger homes.

Buyers priced out of the city are moving into surrounding towns such as Armilla, Alhendin, Maracena and La Zubia – pushing prices up there too. In some cases, values are now matching or even exceeding those in Granada city itself.

Meanwhile, supply remains tight, keeping the market under pressure and fuelling further increases.

Even traditionally more affordable areas are starting to shift. In Motril, for example, prices rose by a modest 0.8% over the past year to €1,346 per square metre – a slower pace, but still part of the broader upward trend.

Tinsa reports that across Spain prices are rising in 40 out of 52 provinces, with increases above 10% in 34 of them, particularly in Madrid, coastal regions and island markets.

For buyers, the biggest issue remains affordability.

Households in Granada are now spending an estimated 37.6% of their income on mortgage payments, which is above the recommended 35% threshold.

While that figure has eased slightly from late 2025, it still highlights the growing strain on local buyers.

The average mortgage requested in the province now stands at €141,220, with monthly repayments of around €589 over 30 years.

According to Tinsa, global instability, particularly the ongoing conflict in the Middle East, could influence inflation and interest rates in the coming months, potentially cooling demand.

But at the same time, property continues to be seen as a safe haven during periods of economic uncertainty, meaning demand may remain resilient despite rising costs.

Read more Andalucia news at the Spanish Eye.