Anyone hoping to buy a home in Marbella or Malaga will need to earn a salary far above what most local workers take home, according to a new report.
Research by property valuation firm Tinsa shows a typical household now needs a net monthly income of €3,532 to afford an average home in Marbella, making it one of the least affordable cities in Spain.
In Malaga city, buyers need to earn €2,832 net per month, placing the Costa del Sol capital among the country’s 10 most expensive housing markets in terms of the income required to secure a mortgage.
The figures are based on the assumption that no more than 35% of a household’s net income should be spent on mortgage repayments, which is a level generally considered financially sustainable.
The calculations are based on a typical 100-square-metre property and do not include the savings needed for a deposit, taxes or other purchasing costs.
Marbella among Spain’s least affordable cities
Only San Sebastian (€5,074), Madrid (more than €4,000) and Barcelona (€4,485) require a higher household income than Marbella, which ranks fourth nationally.
It also has the highest affordability threshold anywhere in Andalucia and is the second most expensive city on Spain’s Mediterranean coast, behind only Barcelona.
Marbella now requires a higher income than other sought-after coastal destinations including Palma de Mallorca (€3,477), L’Hospitalet (€2,896), Benidorm (€2,813) and Valencia (€2,675).
According to Tinsa, international demand continues to push property prices higher in many of these markets, increasing the salary needed to buy a home.
The reality for most workers
The report paints a stark picture when compared with average wages in Malaga province.
According to recent figures from the CCOO trade union, based on Tax Agency data, more than 40% of workers earn less than Spain’s minimum wage, while the average salary in the province is €21,479 gross per year – equivalent to around €1,532 per month over 14 salary payments.
That is roughly €1,300 less per month than the income Tinsa says is needed to buy an average home in Marbella.
How the rest of Andalucia compares
Marbella tops the regional ranking, followed by Cadiz (€2,938) and Malaga (€2,832).
Elsewhere in Andalucia, buyers need an estimated €2,566 per month in Sevilla, €2,314 in Granada, €1,766 in Cordoba, €1,727 in Almeria, €1,481 in Huelva and €1,407 in Jaen.
Across Spain, the average household needs a net monthly income of €1,999 – equivalent to roughly €35,000 gross per year – to purchase an average home.
At the opposite end of the scale, Zamora (€1,279), Lugo (€1,322), Ciudad Real (€1,323) and Palencia (€1,339) remain among the country’s most affordable places to buy property, reflecting lower demand and less pressure on local housing markets.
Read more Andalucia news at the Spanish Eye.
