Price per Square Meter

The most dubious criterion when choosing real estate in Spain. In fact, the price per square meter tells the buyer approximately nothing. The variation even within the same building can be up to 40%, and between houses of different construction periods in the same area, it can easily double. And comparing the price per square between different types of housing is completely pointless. Not to mention the distance from the sea.

Many experienced investors, looking to enter the Spanish real estate market for themselves, ask about the price per square meter before purchasing, trying to base their decision on it regarding which property to buy.

Let's consider an example. In our beloved Spanish coastal city, there is a one-bedroom apartment for sale on the top floor of a six-story apartment building. The area has good infrastructure (shops, schools, parks, a clinic, a bus stop - all nearby). It's a bit far from the center, but the area is not overloaded with traffic and there are parking spaces available. The building is not new, but the apartment has a fresh modern renovation. The complex has a pleasant green area and a very nice pool plus a separate pool for children. It's a 15-minute walk to the sea. But the main advantage is the stunning sea view from the terrace and the living room window and the magnificent view of the salt lakes and the city on the other side. Simply bombastic sunsets and sunrises.

Even the rare storms in our region are a grand spectacle from the windows of this apartment. The price is 54,000 euros. Adequate for such a real estate object in the current market situation. The attentive reader is already wondering: what's the catch? Here's the answer: according to the developer's documents, the living space of the apartment is... 23.5 square meters. That is, the price per sq.m is 2300 euros. Wow. Suddenly, the prospect of drinking morning coffee while watching the sunrise over the sea doesn't seem so appealing.

Suppose we are ready to give up the sea view and consider other options. For the sake of the experiment, let's look for real estate in the same area. Or even better, in the same complex. Here, for example, is an option with 2 bedrooms on the second floor (no sea view, just palms and the pool). We immediately check the area - 56 square meters, small, but there is a terrace and also a balcony. Attention - the main question - the price is 73,000 euros, which is only 1300 per square. A thousand less! And we've just moved down a couple of floors.

The investment potential of both assets is equal. They will be equally good at being rented out, and a sea view will always affect the property value upon resale

What does this example tell us? If we were trying to decide based on the price per square meter, where would that lead us?

What should we consider, what should really determine the price of real estate?

• If it's a coastal city, then the proximity to the sea;
• the view from the window, of course, if it's a sea view - the price can double;
• the construction year, usually the newer, the more expensive, with the exception of historic centers in old cities;
• the building's design and the city area, the cost per m2 can vary greatly.

There's another argument against using the price per square meter as a criterion for choosing real estate. Suppose the area of a room is 12 square meters. What could this room be? For example, it could be a spacious living room 4 by 3 meters with two windows. A great, clear choice, also perfectly suitable for a bedroom. Or it could be a room of unclear purpose, 6 meters long with a window at the end of the tunnel, and what to do with it? Assume the price per square is the same, but the value of these meters to the buyer is entirely different. Much more important are the ease of use, the ability to place furniture according to the room's purpose, natural lighting, and the feeling of open space, ultimately.

What to do?

Contact us for a free consultation and property selection in Spain. We will select truly viable investment options, focusing on matching the property price to the market condition and the investment appeal of the area and region.