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PROPERTY SEARCH

Date Published: 09/12/2024

Murcia among the three most expensive OECD regions for housing

In the Region of Murcia, the average household forks out more than 30% of their budget on housing costs

Property prices, both rentals and purchases, are definitely the hot topic of the moment throughout Spain. As the year winds towards its close, investors and potential buyers always speculate what the new year will hold for the property market and the consensus among experts is clear: in 2025, the only way is up.

The Region of Murcia has always been relatively good value compared to other popular parts of Spain that offer similar draws: a balmy Mediterranean climate, an attractive mix between vibrant cities and quaint villages and a rich history and heritage, to name but a few.

However, a recent report by the Organisation for Economic Co-operation and Development (OECD) has sent shockwaves through the property market, revealing that Murcia, along with the Balearic Islands and Madrid, is among the OECD regions where housing is most expensive.

According to the OECD's latest report on regional differences, families, on average, have to dedicate around 20% of their income to housing. However, in the Region of Murcia, this figure exceeds 30%.

The report highlights that the Balearic Islands (30.4%), Murcia (30.2%) and Madrid (30%) are the three Spanish regions where the 30% threshold is surpassed. This is significantly higher than the national average of 26.3%.

In other regions, the economic burden of housing is much lower. Galicia (20.3%) and Asturias (20.5%) are among the areas where families spend the least on housing.

However, the contrast is stark when compared to the OECD's findings in other countries. For instance, residents of Jerusalem (39.7%), the urban area of Geneva (36.3%) and California (35.3%) face even higher costs, dedicating a larger portion of their monthly budget to rent or mortgages.

Unsurprisingly, there’s a massive disparity in housing costs between urban and rural areas. Over the past decade, house prices in large cities have risen much more sharply than in smaller towns. In cities with more than 1.5 million inhabitants, prices have increased by 68%, compared to 50% in cities with between 250,000 and 1.5 million inhabitants, 37% in cities with 100,000 to 250,000 inhabitants, and 16% in cities with fewer than 100,000 inhabitants.

For the Region of Murcia, this trend is particularly concerning. While the area has long been a popular destination for both Spaniards and international buyers, the rising costs of housing could impact its appeal.

In other news: House prices in Murcia grow at the same rate as property sales

Image: Pexels

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