Mortgages in Spain: average amount — around €220,000 in the Balearic Islands and only €82,000 in Murcia

Mortgages in Spain: average amount — around €220,000 in the Balearic Islands and only €82,000 in Murcia

The average mortgage amount for home purchases approaches €220,000 in the Balearic Islands and reaches €203,000 in Madrid. In Murcia it amounts to around €82,000, in Extremadura it falls short of €87,000, and in La Rioja it barely exceeds €91,000.

Data published by the National Statistics Institute (INE) for August reveals significant regional differences in average mortgage amounts, driven by territorial diversity in the real estate market.

In most regions of Spain, the average mortgage amount is around €110,000: €100,208 in the Valencian Community, €103,634 in Castile and León, €103,648 in Galicia, €103,882 in Ceuta, €105,024 in Aragon, €105,081 in Castile-La Mancha, €107,276 in Cantabria, €110,492 in Asturias, €115,371 in the Canary Islands, €120,412 in Andalusia and €123,190 in Navarre.

Below this main group of regions are the aforementioned Murcia (€81,886), Extremadura (€86,875) and La Rioja (€91,263). Above, with amounts exceeding the average figure (€137,885), is a third group: the Balearic Islands (€219,311), Madrid (€203,181), Melilla (€174,065), Catalonia (€160,831) and the Basque Country (€153,773).

Mortgage amounts lower than before the 2008 crisis

Compared to pre-crisis August 2007, in all autonomous communities mortgages are still being issued for smaller amounts than before the collapse of the housing bubble, with the exception of the Balearic Islands (growth of 19.99%) and, primarily, Ceuta and Melilla (growth of 58.84% and 24.49% respectively).

The largest reduction in mortgage amounts over the past 14 years was recorded in La Rioja — 41.19% and in Murcia — 33.99%. Following are the Valencian Community (-24.92%), Aragon (-23.99%), Castile-La Mancha (-20.93%) and Navarre (-19.02%).

Mortgage amounts decreased (compared to pre-crisis times) in Andalusia (-16.10%), Castile and León (-16.05%), Cantabria (-15.21%) and Catalonia (-14.87%). Near the national average (-9.57%) are four communities: Galicia (-10.06%), Asturias (-9.65%), the Basque Country (-8.21%) and the Canary Islands (-8.02%).

The minimum reduction was recorded in Madrid (-2.58%) and Extremadura (-1.28%).

Compared to 2020, the volume of funds issued decreased in twelve communities: Aragon (-9.62%), Galicia (-7.77%), the Valencian Community (-7.23%), Navarre (-5.01%), Murcia (-4.53%), the Balearic Islands (-2.89%), the Canary Islands (-2.57%), Madrid (-0.68%) and Cantabria (-0.42%), as well as Ceuta (-33.41%).

Meanwhile, growth was noted in Castile and León (+19.23%), Castile-La Mancha (+10.11%), Extremadura (+7.51%), Asturias (+7.53%), Andalusia (+5.48%), La Rioja (+4.46%) and the Basque Country (+3.4%), as well as in Melilla (+27.10%).

The coronavirus crisis did not negatively affect mortgage amounts for home purchases last year: the average figure grew by 6.5%, and increases were observed in 13 communities and in Melilla.

Although the largest growth occurred in Melilla (+112.66%), among autonomous communities the Canary Islands (+19.39%) and Asturias (+19.08%) led, followed by Catalonia (+15.51%) and Castile-La Mancha (+14.62%).

Decreases were recorded in Aragon (-12.81%), Valencia (-3.78%), Navarre (-2.10%) and in the Balearic Islands (-1.94%), as well as in Ceuta (-16.29%).

Average amount of new mortgages in Spain (in euros)

Based on data for Q3 from the National Statistics Institute (INE).