Spain housing crisis: 40,000 euros only enough for home deposit in five provincial capitals

The study, carried out by property portal pisos.com, found that 40,000 euros in savings would be enough to cover the 30 per cent typically required to purchase an average 90-square-metre home in only five provincial capitals: Jaén, Zamora, Cáceres, Ciudad Real and Ávila. In all other provincial capitals, buyers would need more than 40,000 euros to meet the upfront costs associated with a purchase.

The findings come as property prices continue to rise across the country. According to notary data, the average price of a new-build home in Spain stands at 2,934 euros per square metre, while second-hand properties average 2,174 euros per square metre. A typical 90-square-metre flat would therefore cost around 264,060 euros if newly built and 195,660 euros on the resale market.

Buyers generally need to have 30 per cent of the purchase price available before applying for a mortgage. This includes a 20 per cent deposit and a further 10 per cent to cover taxes and transaction costs.

For a new-build property, buyers would need at least 52,812 euros upfront, while a second-hand home would require 39,132 euros. Once additional costs are taken into account, however, even a 40,000-euro savings fund is insufficient in most cases.

Among the five capitals where that amount would be enough, Jaén recorded the lowest average asking price at 114,398 euros, requiring 34,320 euros upfront. In Ávila, buyers would need 39,792 euros, while the figures for Zamora, Cáceres and Ciudad Real ranged between 35,244 and 39,525 euros.

If savings increase to 50,000 euros, the number of provincial capitals where buyers can meet the required threshold rises to 21, including Cordoba, Almeria, Murcia, Tarragona and Huelva. Toledo, Valladolid and Soria fall just short of the amount required.

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By contrast, buyers with 30,000 euros in savings would not be able to cover the required upfront costs in any provincial capital.

Ferran Font, director of research at pisos.com, said the most striking aspect of the findings was that affordable locations tended to be those with fewer employment opportunities.

“What's really revealing isn't how many capitals are left out, but which ones are included. Savings go furthest precisely where jobs are scarce and economic activity is weakest, and fall short where employment opportunities are concentrated,” he said.

Font added that the deposit remains the biggest obstacle for first-time buyers, particularly younger people renting homes while trying to save.

“Asking a young person who lives in rented accommodation to save 50,000 euros is, in practice, asking the impossible. Rent takes up a large share of their income and leaves very little left over. Without family support or an inheritance, the numbers simply don't add up, no matter how much they tighten their belts.”

He also warned that without a substantial financial cushion, negotiating mortgage terms with banks becomes extremely difficult.