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Granada's housing market is experiencing unprecedented growth as of September 2025, with property prices surging 16.7% year-on-year and selling times among the fastest in Spain at just 2.2 months.
The colonial city has become a hotspot for both investors and residents, driven by strong tourist demand, student populations, and growing expat interest. Property values in central neighborhoods like Centro and Realejo continue to outpace national averages, while rental yields reach attractive levels of 4-5% for well-positioned apartments.
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Granada's property market shows exceptional momentum with €2,507/m² average prices and rapid 16.7% annual growth.
Central historic neighborhoods offer the best investment potential with highest yields and appreciation rates.
| Metric | Current Value | Trend |
|---|---|---|
| Average Price/m² | €2,507 | +16.7% YoY |
| Selling Time | 2.2 months | Fastest in Spain |
| Rental Yield | 4.1% average | Up to 5.1% studios |
| Market Inventory | 185 properties | Tight supply |
| Top Neighborhoods | Centro, Realejo | €2,848/m² peak |
| Most Affordable | Norte, Zaidín | €1,392/m² |
| Best Investment Type | Studios, 1-2 bed | Highest demand |
What's the current average price per square meter in Granada overall?
The average price per square meter in Granada city reaches €2,507 as of September 2025.
This figure represents a significant jump from the €2,148/m² recorded in July 2024, marking one of Spain's most dynamic property markets. The price range varies dramatically across neighborhoods, from €1,392/m² in the Norte area to €2,848/m² in the premium Centro district.
Some property portals show a blended average closer to €1,857/m², but this includes wider metropolitan areas and mixed property types that don't reflect the core Granada market reality. The €2,507/m² figure specifically represents Granada municipality proper, where most investment and residential activity occurs.
Central historic neighborhoods command the highest premiums, with areas like Realejo and Albaicín approaching Centro's pricing levels due to their tourist appeal and limited inventory. Meanwhile, emerging areas like Zaidín offer entry points around €1,500/m² for investors seeking value plays.
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How have property prices changed over the past 3 months, past year, and past 5 years?
Granada's property market has accelerated dramatically, with annual growth hitting 16.7% from July 2024 to July 2025.
The past three months have shown particularly strong momentum, contributing to this exceptional year-over-year performance that places Granada among Spain's fastest-appreciating markets. Provincial growth averaged 7.6% at the end of 2024, but Granada city has significantly outpaced this regional benchmark.
The one-year trajectory shows sustained upward pressure driven by tight inventory, rapid sales cycles, and increasing demand from both domestic and international buyers. Tourist interest and student housing needs have created consistent market support throughout 2025.
Looking at the five-year trend, Granada has experienced steady appreciation accelerating post-pandemic, though specific long-term figures require official registry confirmation. Market participants report that current growth rates represent a continuation of trends that began gaining momentum in 2022-2023.
This rapid appreciation reflects Granada's emergence as a premier Spanish investment destination, combining historic charm with modern amenities and strong rental fundamentals.
Which neighborhoods are currently seeing the fastest price growth and which are declining?
Centro leads Granada's price growth at €2,848/m², followed closely by the gentrifying Realejo and historic Albaicín neighborhoods.
These central areas benefit from tourism infrastructure, cultural attractions, and limited development opportunities that create natural supply constraints. Realejo has become particularly attractive to international buyers seeking authentic Spanish architecture with modern conveniences.
The Albaicín district commands premium pricing due to its UNESCO World Heritage status and panoramic views of the Alhambra, making it a trophy destination for both investors and luxury residents. Recent infrastructure improvements have enhanced accessibility while preserving historic character.
Norte and Zaidín represent the market's most affordable segments at €1,392-€1,500/m², showing less upward pressure but also less decline risk. These areas attract first-time buyers and investors seeking rental yields over capital appreciation.
No neighborhoods are experiencing actual price declines, but growth rates vary significantly based on location, amenities, and development potential.
What's the current average selling time for properties in different areas of Granada?
Granada properties sell in an average of 2.2 months, ranking among Spain's fastest markets nationwide.
This exceptionally quick turnover reflects strong buyer demand, limited inventory, and competitive pricing that moves properties rapidly through the sales process. Central neighborhoods like Centro and Realejo often see even faster sales for well-priced, move-in-ready properties.
Premium historic properties in Albaicín may take slightly longer due to their higher price points and more selective buyer pool, but rarely exceed 3-4 months on market. New construction and renovated properties typically command the shortest selling times.
The Norte and Zaidín areas also benefit from quick sales cycles, particularly for properties priced competitively within the €150,000-€300,000 range that attracts the broadest buyer demographic. Student housing and rental investment properties move especially quickly.
This rapid market velocity indicates healthy demand fundamentals and suggests continued price support as inventory remains constrained relative to buyer interest.
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How many properties are currently on the market in Granada, and how does that compare to recent months?
Approximately 185 properties are actively listed for sale in Granada city as of September 2025.
This inventory level represents a significant decrease compared to earlier periods in 2024, reflecting the rapid absorption rate and strong buyer demand that characterizes the current market. The tight supply situation contributes directly to upward price pressure and quick sales cycles.
The limited inventory spans all property types but is particularly constrained in the most desirable central neighborhoods where new listings often receive multiple offers within days. Historic properties and renovated units face the greatest supply shortages.
Market participants report that quality properties in Centro, Realejo, and Albaicín rarely remain available for more than a few weeks, with some premium listings selling before formal marketing begins. This creates a highly competitive environment for buyers.
The inventory shortage also reflects Granada's geographic constraints and historic preservation requirements that limit new development opportunities, ensuring continued supply-demand imbalances that support price appreciation.
What's the rental yield right now for apartments and houses in the main neighborhoods?
Granada delivers average gross rental yields of 4.1%, with studios achieving the highest returns at 5.1%.
| Property Type | Average Price | Rental Yield |
|---|---|---|
| Studios | €140,000 | 5.1% |
| 1 Bedroom | €195,000 | 4.3% |
| 2 Bedroom | €223,450 | 4.6% |
| 3+ Bedroom | €250,000-€365,000 | 3.7-4.0% |
| Realejo Area | Varies | Up to 11.7% |
| Albaicín Area | Varies | 6-8% |
| Centro Area | Varies | 4-6% |
Realejo and Albaicín neighborhoods offer the highest yield potential, with some properties achieving returns between 6-11.7% due to strong student and tourist rental demand. These historic areas benefit from Granada's university population and growing short-term rental market.
Centro properties typically yield 4-6%, balancing strong rental demand with higher purchase prices. The area's premium location ensures consistent occupancy but requires higher initial investment.
Small apartments consistently outperform larger units in yield calculations, reflecting Granada's student housing market and young professional demographic that prioritizes location over space.
Which property types are in highest demand at the moment?
Studios and small 1-2 bedroom apartments dominate Granada's current demand, particularly in Centro, Realejo, and Albaicín neighborhoods.
Student housing drives significant demand for compact, well-located units near the university and historic center. International students and young professionals prefer modern amenities in traditional buildings, creating premium pricing for renovated properties.
New construction enjoys exceptional demand among both investors and families, though limited supply constrains availability. These properties offer modern systems and layouts while maintaining Granada's architectural character.
Historic colonial townhouses attract strong interest from expat buyers and lifestyle investors seeking authentic Spanish living experiences. These character properties often feature traditional courtyards and period details that command premium pricing.
Investment buyers particularly favor properties suitable for short-term rentals, given Granada's tourism growth and Airbnb market potential in historic neighborhoods.
How much inventory is available in each property type and price range?
The €150,000-€300,000 price range offers the most active inventory and fastest sales cycles in Granada's market.
- Studios (€120,000-€160,000): Very limited supply, immediate sales typical
- 1-bedroom apartments (€170,000-€220,000): Moderate inventory, high turnover
- 2-bedroom units (€200,000-€280,000): Balanced supply/demand, quick sales
- 3+ bedroom properties (€250,000-€400,000+): More available but slower movement
- Historic townhouses (€300,000-€600,000+): Limited luxury inventory, selective buyers
The mid-market segment between €150,000-€300,000 experiences the most competitive buying conditions, with properties often receiving multiple offers and selling above asking prices. This range attracts the broadest buyer pool including investors, first-time buyers, and relocating families.
Higher-priced properties above €400,000 remain available longer but still sell within 3-4 months for well-positioned units. These premium properties typically feature superior locations, renovations, or unique architectural elements.
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What are the most common price ranges where sales are closing quickly right now?
Properties priced between €150,000-€300,000 close fastest in Granada, often within 30-45 days of listing.
This mid-market sweet spot attracts maximum buyer competition from investors seeking rental yields, young professionals purchasing primary residences, and families relocating to Granada. Properties in this range offer accessible financing while providing quality locations and amenities.
Studios and 1-bedroom apartments priced €140,000-€195,000 sell almost immediately when well-located, particularly in student-friendly neighborhoods near the university. These units appeal to both buy-to-let investors and first-time buyers.
Renovated 2-bedroom properties between €200,000-€280,000 experience intense bidding wars, especially when featuring modern kitchens, updated systems, and historic character elements. Move-in-ready condition accelerates sales significantly.
Properties above €350,000 require longer marketing periods but still move faster than comparable markets elsewhere in Spain, reflecting Granada's strong fundamentals and growing international recognition.
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If buying to live in, which areas currently offer the best value for long-term appreciation?
Centro, Realejo, and Albaicín offer the strongest long-term appreciation potential for primary residence buyers.
Centro provides urban vibrancy with excellent amenities, restaurants, and cultural attractions that ensure sustained demand and value growth. The area's walkability and historic charm attract both Spanish and international residents seeking authentic city living.
Realejo emerges as the top value play, combining historic character with ongoing gentrification that drives appreciation. Recent infrastructure improvements and growing expat community create positive momentum for property values.
Albaicín commands premium pricing but offers trophy asset potential with UNESCO status and Alhambra views that provide long-term value protection. Properties here benefit from tourism growth and international recognition.
Emerging value opportunities exist in Zaidín and La Chana, where urban improvements and new amenities support family-friendly living with growth potential. These areas offer larger properties at lower price points with infrastructure development upside.
Reparto San Juan represents a gentrifying opportunity where early buyers can capture appreciation as the neighborhood transitions upmarket with new development and improved services.
If buying to rent out, which neighborhoods give the best balance of purchase price, rental demand, and yield?
Realejo delivers the optimal balance of affordable purchase prices, strong rental demand, and attractive yields up to 11.7%.
This historic neighborhood attracts consistent tenant demand from students, young professionals, and short-term rental guests while maintaining more accessible purchase prices than Centro. The area's trendy restaurants and proximity to major attractions ensure year-round occupancy.
Albaicín offers excellent rental yields of 6-8% with premium tenant quality, though higher purchase prices require larger initial investment. The neighborhood's tourist appeal supports both long-term and vacation rental strategies.
Centro provides the most reliable rental demand with minimal vacancy risk, though yields moderate to 4-6% due to higher acquisition costs. The area works best for investors prioritizing occupancy stability over maximum returns.
Properties near the university in any neighborhood command rental premiums and consistent demand from Granada's large student population, making them particularly attractive for buy-to-let investors.
It's something we develop in our Nicaragua property pack.
If buying to resell in the short term, which segments and locations have the strongest flip potential?
Prime Centro properties offer the strongest short-term flip potential, particularly boutique conversion opportunities and restored townhouses.
Realejo presents excellent flip opportunities for investors willing to undertake renovations, with the neighborhood's trendy status supporting premium resale values for updated properties. Historic homes requiring modernization offer the highest return potential.
Colonial charm properties along Calle La Calzada and near Central Park command immediate buyer interest when properly renovated, appealing to both local upgraders and international lifestyle buyers seeking authentic Spanish architecture.
Fast-growing districts with active gentrification projects provide flip potential as infrastructure improvements and tourism initiatives drive rapid value appreciation. Properties requiring cosmetic updates rather than major renovations offer the quickest turnaround potential.
Short-term rental conversion projects in historic neighborhoods deliver strong flip returns when positioned correctly for Granada's growing vacation rental market, particularly properties with outdoor space or Alhambra views.
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 housing market in September 2025 demonstrates exceptional momentum with rapid price appreciation, quick sales cycles, and strong rental fundamentals that position it among Spain's premier investment destinations.
Central historic neighborhoods offer the best combination of appreciation potential and rental yields, while emerging areas provide value opportunities for investors with longer-term horizons.
Sources
- Indomio - Granada Capital Market Data
- Spain Houses - Granada Price Analysis
- Idealista - Andalusia Price Increases
- Spain Homes - Investment Areas Guide
- Spain Easy - Granada Real Estate
- Idealista - Property Selling Times Spain
- Best Yield Finder - Granada Rental Yields
- The Latinvestor - Granada Property Analysis