Granada was the capital of the Nasrid dynasty, the last Muslim rulers of Spain, until 1492. They built the Alhambra, and their city of narrow streets, water channels and walled gardens shaped the Albaicín and the old centre. After the Christian conquest, the city became a religious and administrative centre, with a cathedral and royal chapel, and the university was founded in the sixteenth century.
Today the economy depends on the university, one of the largest in Spain with a very large exchange population, plus tourism, public administration, health services and research. There is little heavy industry, and the private job market is thin. Unemployment is 21.1% (2025), one of the highest rates among large Spanish cities, and jobs come out average. Adults with a university degree make up 60% (2024), so many qualified people compete for few openings, and many graduates leave.
Housing is cheaper than on the coast, though rooms near the university and flats in the centre are sought after. A typical 70 m² flat rents for about €479 a month (2024), and buying costs €2,446 per square metre (Q2 2026). Rents are rising: 4.1% over the year (2024), and housing comes out average.
The crowded centre and the student nightlife also shape the safety picture. Recorded crime is 56.5 per 1,000 people (2024), mostly theft in the busy streets, and safety comes out average. Healthcare comes out below average in the overall picture, though the city has a large public hospital with a high number of beds (9.6 per 1,000 people, 2025).