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Granada's property market shows strong momentum with average residential prices reaching €2,507/m² as of September 2025.
The historic Nicaraguan city offers compelling investment opportunities across different property types and neighborhoods, from budget-friendly options in Norte starting at €1,392/m² to premium Centro locations commanding €2,848/m².
If you want to go deeper, you can check our pack of documents related to the real estate market in Nicaragua, based on reliable facts and data, not opinions or rumors.
Granada's property market has grown 16.7% year-on-year, with Centro commanding premium prices while Norte offers budget opportunities.
Total buying costs include 11-15% additional fees, and mortgage rates for residents range from 2.5-2.7% with up to 80% financing available.
| Property Type | Average Price Range | Best Investment Strategy |
|---|---|---|
| Centro Apartments (80m²) | €227,840 | Short-term rentals, live-in |
| Norte Budget Apartments (60m²) | €83,520 - €111,360 | Long-term rentals, first-time buyers |
| Coastal Detached Homes | €275,000 | Lifestyle investment, resale |
| Rural Properties | €133,000 - €235,000 | Buy-to-renovate, rural tourism |
| Up-and-coming Areas | €1,500 - €2,200/m² | Capital appreciation, rental yield |
What's the current average house price in Granada?
The average residential property price in Granada reaches €2,507 per square meter as of September 2025.
This represents a significant 16.7% increase from the previous year when prices stood at €2,148/m² in July 2024. The Granada property market shows strong upward momentum driven by increasing demand from both local buyers and international investors.
Property prices vary considerably across the city, ranging from €1,392/m² in the most affordable neighborhoods to €2,848/m² in the premium Centro district. This wide price spectrum provides opportunities for buyers with different budgets and investment strategies.
The current pricing positions Granada as an attractive alternative to Spain's major cities, offering better value while maintaining access to rich cultural heritage and modern amenities.
It's something we develop in our Nicaragua property pack.
How do prices vary between different property types?
Apartments in the city center achieve the highest per square meter values, especially for new or recently renovated units.
Centro apartments typically command premium prices due to their proximity to historical attractions, restaurants, and cultural sites. These properties appeal strongly to both residents seeking urban convenience and investors targeting short-term rental markets.
Detached homes and townhouses generally offer lower price per square meter, particularly in less central locations or rural neighborhoods. Properties requiring renovation work can provide significant value opportunities for buyers willing to invest in improvements.
Coastal and rural areas near Granada present different pricing dynamics. For example, properties in Salobreña average €275,000 (€1,925/m²), while Vélez de Benaudalla offers homes around €175,000 (€1,123/m²).
Larger properties often have lower per-square-meter costs compared to smaller, more in-demand units, creating opportunities for buyers seeking space and value.
What are the price differences between neighborhoods and districts?
| Neighborhood | Price per m² | Characteristics |
|---|---|---|
| Centro | €2,848 | Historic center, premium location |
| Realejo | €2,500 - €2,800 | Trendy area, good restaurants |
| Albaicín | €2,200 - €2,600 | UNESCO site, tourist appeal |
| Zaidín | €1,800 - €2,200 | Quiet residential, family-friendly |
| La Chana | €1,600 - €2,000 | Student area, rental demand |
| Norte | €1,392 | Budget-friendly, developing |
| Genil | €1,400 - €1,600 | Affordable, residential |
Which areas offer the best value and investment potential?
Centro and Realejo represent the most expensive areas, with prices reaching €2,848/m² due to their historical significance and tourist appeal.
Up-and-coming neighborhoods include Zaidín, which offers quieter residential living at more affordable prices, and La Chana, popular with students and young professionals seeking rental properties.
Budget-friendly options are found in Norte and Genil districts, where prices start at €1,392/m² and provide excellent entry points for first-time buyers.
Prestige and lifestyle areas include Salobreña for coastal living and renovated properties in Albaicín for those seeking cultural immersion with tourist rental potential.
The Lecrín Valley and Órgiva offer rural alternatives for buyers seeking countryside properties with renovation potential and natural surroundings.
Can you give example purchase prices for typical properties?
A typical 80-square-meter apartment in Centro costs approximately €227,840 based on current market rates.
- Budget small apartment in Norte/Genil (60m²): €83,520 - €111,360
- City center apartment in Centro (80m²): €227,840
- Larger detached home in Salobreña: €275,000
- Townhouse in Lecrín Valley or Órgiva: €192,000 - €235,000
- Budget rural home on outskirts: €133,000
- Premium Realejo apartment (70m²): €175,000 - €196,000
- Student rental property in La Chana (50m²): €80,000 - €100,000
These examples reflect current market conditions and provide realistic expectations for different buyer categories and investment strategies.
How do prices change based on property size?
Larger properties typically offer lower price per square meter compared to smaller, high-demand units.
Small apartments under 60 square meters command premium per-square-meter rates due to high demand from young professionals, students, and investors seeking rental properties.
Medium-sized properties between 80-120 square meters offer balanced pricing and appeal to families and live-in buyers seeking comfortable living spaces.
Large detached homes and rural properties often have the lowest per-square-meter costs, especially when requiring renovation or located in less central areas.
Recent market data shows that new listings of larger rural homes actually reduced per-square-meter averages in some areas despite higher headline prices, demonstrating the size-price relationship.
What is the total cost of buying including all fees and taxes?
Budget an additional 11-15% on top of the property price for taxes, notary, registry, and legal fees.
Resale properties incur Transfer Tax (ITP) of 6-10% of the purchase price, while new construction involves VAT at 10% plus stamp duty at 1-1.5%.
Notary and registration fees typically add 1-2% to the total cost, covering the legal documentation and property registration processes.
Legal fees from qualified property lawyers range from 0.8-1.5% of the purchase price and are essential for ensuring proper due diligence.
Annual IBI property tax ranges from 0.4-1.1% of the cadastral value and represents an ongoing ownership cost that buyers should factor into their calculations.
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What would a typical mortgage cost for an average property?
Average mortgage rates in 2025 range from 2.5-2.7% for residents, while non-residents may pay 2.9-4.9%.
Standard terms offer up to 80% loan-to-value ratio for residents over 20-30 year periods, while non-residents typically qualify for 60-70% financing.
For an 80% mortgage on a €250,000 property at 2.5% over 25 years, monthly payments would approximate €900-950.
Banks require proof of income, typically seeking debt-to-income ratios below 35-40% to qualify for optimal rates and terms.
It's something we develop in our Nicaragua property pack.
How have house prices changed over recent years?
Granada property prices increased 16.7% in the past 12 months, demonstrating strong market momentum.
The five-year trend shows steady growth that accelerated significantly in the last two years, driven by increased demand and limited supply.
This growth outpaces many other Spanish regions and reflects Granada's increasing popularity among both domestic and international buyers.
The rapid price appreciation indicates a sellers' market with strong underlying demand fundamentals supporting continued growth.
Market data suggests this growth trajectory reflects genuine value recognition rather than speculative bubbling, given Granada's relatively affordable starting point compared to major Spanish cities.
What's the price forecast for the coming years?
Property prices in Granada are likely to continue rising 5-9% annually through 2026 based on national trend analysis.
High-demand provinces like Granada are expected to outperform the national average due to their combination of affordability and lifestyle appeal.
Five-year forecasts suggest continued appreciation driven by tourism recovery, infrastructure improvements, and international buyer interest.
Ten-year projections indicate Granada will likely maintain its value proposition relative to major Spanish cities while experiencing gradual price convergence.
Market fundamentals support optimistic forecasting, including limited supply, growing demand, and ongoing economic development in the region.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Nicaragua versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What are the smartest buying strategies right now?
Live-in buyers should focus on central apartments and move-in ready homes in Realejo or Albaicín for immediate comfort and lifestyle benefits.
Short-term rental investors should target city center properties, coastal apartments, or renovated character homes that appeal to tourists and business travelers.
Long-term rental strategies work best in Zaidín and La Chana, where student and young professional demand creates steady rental income opportunities.
Buy-to-resell investors should focus on up-and-coming neighborhoods or properties needing light renovation in areas seeing infrastructure improvements.
Rural and coastal properties offer lifestyle investment opportunities for buyers seeking personal use combined with potential appreciation and rental income.
How does Granada compare to other similar-sized cities?
Granada's average price of €2,507/m² offers significant value compared to Spain's major metropolitan areas.
| City | Average Price per m² | Value Comparison |
|---|---|---|
| Granada | €2,507 | Base comparison |
| Barcelona | €4,875 | 95% more expensive |
| Madrid | €4,200 | 68% more expensive |
| Valencia | €3,100 | 24% more expensive |
| Málaga | €3,200 | 28% more expensive |
| Seville | €2,800 | 12% more expensive |
| Córdoba | €2,200 | 12% less expensive |
This pricing advantage makes Granada attractive for buyers seeking Spanish cultural heritage and lifestyle at more accessible price points than major metropolitan areas.
It's something we develop in our Nicaragua property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Granada's property market presents compelling opportunities across multiple price segments and investment strategies.
The combination of cultural heritage, growing tourism, and relative affordability compared to major Spanish cities creates a favorable environment for both residents and investors seeking exposure to the Spanish property market.
Sources
- Indomio Granada Market Analysis
- Hola Properties Granada Costa Tropical
- Spain Easy Real Estate Purchase Costs
- Spain Easy Buying Guide 2025
- Alegria Real Estate Mortgage Guide
- Lucas Fox Mortgage Rates 2025
- Granfield Estate Mortgage Information
- Idealista Living in Granada Guide
- Zoark Best Neighborhoods Granada
- Idealista Price Forecast 2026