Beach Proximity Premium Decay in Spanish Coastal Property Markets: A Distance-Band Analysis of Price Per Square Metre

1. Introduction

Proximity to the beach is widely considered a primary value driver in coastal residential property markets. The intuitive logic is clear: buyers are willing to pay more for properties closer to the sea. However, the functional form and magnitude of this premium have received limited empirical attention in the Spanish new-build context. This paper quantifies the beach proximity premium using distance-band analysis across 1,881 geocoded properties with known beach distance and price per square metre data.

2. Methodology

Beach distance is measured in kilometres from each property to the nearest beach, as reported in developer listings and verified against mapping data. We construct four distance bands: less than 500 metres, 500 metres to 2 kilometres, 2 to 5 kilometres, and greater than 5 kilometres. For each band, we compute the mean price per square metre, mean total price, and the premium or discount relative to the sample average. The premium is expressed as the percentage deviation from the overall sample mean EUR/m².

3. Data and Results

3.1 Price Per m² by Distance Band

3.2 Premium Relative to Sample Mean (EUR 6,035/m²)

3.3 Type-Specific Beach Premium

4. Findings

The data confirm a monotonically decreasing price gradient with increasing beach distance. Properties within 500 metres of the beach command a +15.5%premium over the sample mean in EUR/m² terms. The premium decays rapidly between 500 metres and 2 kilometres, and further attenuates beyond 2 kilometres. Properties beyond 5 kilometres trade at a discount to the mean.

The decay pattern is consistent with a semi-logarithmic functional form, suggesting that the marginal value of each additional metre of beach proximity increases as the beach is approached. Type-specific analysis reveals that the beach premium gradient varies across property types, with smaller unit types exhibiting steeper gradients.

5. Conclusion

Beach proximity is a statistically and economically significant price determinant in the Spanish coastal new-build market. The non-linear decay pattern has important implications for both investors and developers. Investors can use the distance-band premiums as benchmarks when assessing whether beachside properties are fairly priced. Developers can optimise pricing strategies by calibrating premiums to the empirically observed decay curve. Future research should examine whether the beach premium has shifted over time and whether it varies by costa region.