Property in Spain under threat: How are heatwaves, drought and water shortages changing the market?

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The purchase of property in Spainespecially on the sunny shores of the Costa del Sol or Costa Blanca, has long been a target for investors from all over Europe. But behind the idyllic picture of beaches and golf courses lies an increasingly serious problem that directly affects property values and maintenance: chronic water shortages, combined with extreme heat and the risk of fires.

The new reality: drought as a permanent state

Spain is experiencing its worst drought in decades. Regions such as Andalusia and Catalonia, which are also among the most popular destinations for buying property, are in a state of permanent anxiety. Dams are at critically low levels and the authorities are imposing ever tighter restrictions on water consumption.

This problem is no longer temporary but is becoming a structural feature of the climate. For property owners and buyers in Spain, this has very concrete consequences:

1. Water restrictions and fines. Violators face serious fines. This directly hits the lifestyle that attracts buyers – the lush green garden and sparkling blue pool.

2. Rising maintenance costs: water charges are rising, and with them the costs of maintaining the common areas in residential complexes (community fees). Maintaining green areas and communal swimming pools is becoming more and more expensive, affecting every owner.

3. Decline in the value of “thirsty” properties. Buyers are becoming increasingly cautious, realising that their maintenance is expensive and uncertain. This could lead to a drop in demand and prices for these types of properties in the worst affected areas.

Heat waves and fires: the fire risk

Drought goes hand in hand with extreme heat. Temperatures above 40°C are no longer the exception in summer, but the norm. This creates perfect conditions for the outbreak of large-scale forest fires that devastate thousands of hectares every year, often in close proximity to urban areas.

What does the investor need to know?

  • Risk for “campo” properties: the most vulnerable are so-called “fincas” or houses in the countryside (campo) surrounded by forests and dry vegetation. They offer privacy but are on the front line in a fire.
  • Insurance premiums: insurance companies are aware of the risk. Premiums for properties in high fire risk areas are significantly higher. Full coverage is an absolute must.
  • Protective measures: local authorities require owners to maintain ‘clear zones’ around their properties – to remove dead shrubs and branches, which is an additional maintenance cost.

Adaptation: the new standard for property in Spain

The market is beginning to adapt to the new reality. Smart investors and developers are now focusing on sustainability.

  • Xeriscaping: This is the trend of landscaping with drought-tolerant, native plants that require minimal watering. Lush English meadows are being replaced with beautiful gardens of cacti, succulents and ornamental stones.
  • Rainwater harvesting systems: the installation of tanks to collect and use rainwater is becoming increasingly popular.
  • Saltwater pools: saltwater pools require less frequent water changes than chlorine pools.
  • Energy efficiency: properties with good insulation, quality windows and solar panels that reduce air conditioning costs have a significant advantage in the market.

Property investment in Spain remains attractive, but the focus is shifting. It is no longer enough for a property to have a sea view. It must also be sustainable. The 2025 buyer is not just asking “How big is the pool?” but “Where is the water for it coming from and how much will it cost me?”. Choosing a property that is adapted to the new climatic conditions is the surest guarantee of preserving the value and enjoyment of your Spanish dream.

This post is also available in: Български

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