Gijón housing prices up 60% since 2020, forum users say

Gijón: housing up 60% since 2020 and nobody can agree

In August 2020, a 90-square-metre flat in central Gijón cost 300,000 euros plus VAT, according to one participant. Five years later, that same type of property has appreciated by almost 60%, according to the figures used by those who trinc the local market. The question hanging over the city is not whether prices are high, but whether they reflect something real or a bubble fuelled by buyers from elsewhere.

The debate began with a remote professional looking to move from Madrid to a coastal city in northern Spain. He ruled out Ferrol because of its demographic decline and focused on Gijón, Santander and A Coruña. His initial conclusion was that prices were out of proportion with average salaries and the city's prospects. The response was not long in coming: from within the local market itself he was told that large old houses could be found for under 300,000 euros, though he insisted on his preference for central flats.

How prices have evolved: from scepticism to surprise

The thread, which has run for more than six years, captures a remarkable shift in narrative. In 2020, some participants considered 65,000 euros a reasonable price for a decent flat in the city. Today, that figure draws laughter from those who know the market. A 20% increase in the last year alone and a cumulative rise of 60% since August 2020 paint a scenario nobody anticipated.

The figures circulating in the conversation suggest that old flats in areas such as Viesques are selling for over 400,000 euros, and that foreign demand and demand from other Spanish regions is straining the market. The paradox is that, while some neighbourhoods are seeing token price drops, the city as a whole continues on an upward trend that baffles even locals.

Is Gijón an opportunity or a trap?

Opinions are deeply divided. On one side are those who argue that Gijón offers a quality of life that is hard to match: urban beaches, well-regarded public healthcare, safety and a mild climate compared with inland Spain. They contend that the city remains relatively cheap compared with Madrid or Barcelona, and that tourism and the arrival of digital nomads will sustain prices.

At the other extreme, demographic winter and industrial closures are cited as structural drags. The loss of young population, reliance on mature sectors and the lack of skilled job opportunities paint a bleak picture. From this viewpoint, today's prices rest not on solid foundations but on a wave of outside buyers that could reverse.

The summer factor and tourist pressure

One element that antiestéticatures prominently in the discussion is seasonality. In summer, Gijón's population soars and the city becomes a hive of visitors. This peak in seasonal demand spills over into the property market, with prices behaving differently depending on the time of year. Some participants claim the city can go from 400,000 inhabitants in winter to nearly one million in high season, a range that reflects the intensity of the phenomenon.

That tourist pressure has direct consequences for renting and buying. Flats near San Lorenzo beach and the marina are the most sought after, and their prices show it. The La Arena area, with its tall 1960s buildings and wide streets, is emerging as one of the most in-demand neighbourhoods, with prices around 300,000 euros for 100-square-metre, three-bedroom flats.

Detroit's shadow and the spectre of decline

The comparison with Detroit, thrown into the debate, is not gratuitous. The city has lost 50,000 young people in a decade, according to one of the claims circulating, and an ageing population is a reality affecting the whole of Asturias. Those who defend this thesis argue that Gijón is heading towards a city model built for retirees and tourists, with an economy increasingly dependent on services and less on industry.

Against this view, others argue that Gijón is not Detroit and never will be. The city maintains a diversified productive fabric, with a public university hospital and four private ones, a university and a privileged geographical position. The key, they say, lies in whether it can attract and retain young talent in a context of global competition for remote work.

The uncertain future of prices

The question looming over the whole analysis is whether current prices are sustainable. The 60% rise in five years has exceeded all forecasts, and some are beginning to see signs of exhaustion. Flats that have sat on the market for two years without selling, timid price cuts and a certain moderation in demand are starting to appear in specific neighbourhoods.

However, the overall trend remains upward. The shortage of new builds, pent-up demand and the city's appeal to buyers from other regions keep the pressure on prices. The open question is how long this dynamic can last without economic fundamentals to back it up.

In these conditions, deciding to buy in Gijón becomes an act of faith. Is it time to get in or to wait? The answer depends on whether you believe the city has a future more like San Sebastián's or more like Detroit's. And right now, nobody knows.