Ceuta flats priced like a capital despite border crisis

Ceuta: Flats at capital prices without escaping the crisis

How much does a flat cost in a besieged city where borders are open and the future is uncertain? The answer, according to Idealista, is surprising: more than many would expect. A 77-square-metre flat in the Zona Muelle – the outskirts – is selling for €170,000. And it's not the most expensive: listings run to €300,000, €400,000 and even €500,000.

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The price enigma in a border economy

Ceuta enjoys a free-zone regime with few taxes and generous subsidies, similar to the Canary Islands. But its location, a gateway to Africa, also fuels a parallel economy: smuggling of people and hashish. For some, these illicit flows inflate the property market. The theory is that some of the black money is laundered by buying flats, driving prices far above what local income and stability would justify. A 77 m² flat at €2,200/m² is close to the average in cities like Madrid or Barcelona, but without the jobs or services.

Money laundering or simple supply and demand?

Some argue that the high price reflects limited supply and demand from those who – for tax or strategic reasons – want a foothold in Europe. But others point to suspicious transactions as the main cause. The presence of drug lords, according to some analyses, has turned the city into a haven for capital. However, there is no official data confirming the scale of this phenomenon. What is certain is that prices are not falling, despite demographic decline and the legal insecurity denounced by many residents.

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While the border crisis becomes chronic and illegal trafficking continues, flat prices in Ceuta hold firm. Perhaps the buyer is not just acquiring a home, but a passport to a tax-free economy. Or, as popular irony has it, the price includes a tunnel.