Home News House prices in Spain show substantial growth

House prices in Spain show substantial growth

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Significant price increases – in double digits – are detected across Spain’s main communities

At the provincial capital level, Madrid, Las Palmas, and Málaga start 2024 reaching peak prices. The population and tourist attraction capacity of these cities generates such a strong demand that the supply cannot absorb, leading to upward pressure on prices. Following the statements of the ECB opening the door to an interest rate cut before next summer, an even stronger demand for buying is expected, which could further increase housing prices,” explains María Matos, Director of Studies and spokesperson for Fotocasa.

Analysing the prices of housing for sale compared to a year ago, we see that 16 communities increase the year-on-year price in January. Unlike other months, where increases of over 10% were seen in six communities in January, they are the Canary Islands (23.7%), the Balearic Islands (15.2%), Madrid (12.7%), the Region of Murcia (11.1%), Valencia (11.0%), and La Rioja (10.5%). Following them are the communities of Aragon (9.5%), Navarra (9.5%), Andalusia (9.0%), Cantabria (7.7%), the Basque Country (5.6%), Catalonia (4.3%), Castilla-La Mancha (3.7%), Galicia (3.3%), Asturias (3.1%), and Castilla y León (1.6%).

Regarding the ranking of Autonomous Communities (CC.AA.) with the most expensive second-hand housing prices in Spain, the Balearic Islands and Madrid are at the top, with prices of €3,872/m2 and €3,852/m2, respectively. They are followed by the Basque Country with €3,087/m2, Catalonia with €2,771/m2, the Canary Islands with €2,450/m2, Navarra with €2,050/m2, Andalusia with €2,010/m2, Cantabria with €1,933/m2, Aragon with €1,768/m2, Valencia with €1,766/m2, Galicia with €1,713/m2, La Rioja with €1,695/m2, Asturias with €1,657/m2, Castilla y León with €1,480/m2, the Region of Murcia with €1,320/m2, Castilla-La Mancha with €1,202/m2, and Extremadura with €1,194/m2.

Provinces

In 88% of the 50 provinces analyzed, the year-on-year price of housing rose in January. In 12 provinces, the increase exceeded 10%, specifically in Santa Cruz de Tenerife (28.7%), Málaga (19.9%), Las Palmas (15.7%), Illes Balears (15.2%), Tarragona (12.9%), Madrid (12.7%), Alicante (12.6%), Teruel (11.9%), Murcia (11.1%), La Rioja (10.5%), Girona (10.3%), and Segovia (10.0%). On the other hand, the six provinces with year-on-year declines are: Álava (-0.1%), Zamora (-0.3%), León (-0.5%), Ciudad Real (-1.1%), Jaén (-1.7%), and Badajoz (-3.6%).

In terms of prices, Illes Balears is the most expensive province with €3,872/m2, followed by Madrid (€3,852/m2) and Gipuzkoa (€3,482/m2), among others. On the other hand, the province with a price per square meter below €1,000 is Ciudad Real with €979/m2.

Capital cities

In 46 of the 50 provincial capitals (92%) with year-on-year variation, prices rose in January compared to the previous year. Fourteen of the capitals saw increases of over 10%, namely Teruel (21.8%), Santa Cruz de Tenerife (19.0%), Málaga (17.6%), Madrid (16.6%), Valencia (15.7%), Alicante (15.1%), Huelva (15.0%), Huesca (14.3%), Soria (13.6%), Palma de Mallorca (13.5%), Las Palmas de Gran Canaria (13.5%), Santander (12.4%), Murcia (11.8%), and Lleida (10.2%). On the other hand, decreases were recorded in the capitals of Vitoria-Gasteiz (-0.4%), Zamora (-1.9%), Lugo (-2.5%), and Badajoz (-2.6%).

Regarding prices, the most expensive provincial capital is Donostia – San Sebastián with €6,058/m2, followed by Madrid (€4,955/m2), Barcelona (€4,502/m2), Palma de Mallorca (€4,099/m2), Bilbao (€3,596/m2), Málaga (€3,384/m2), and Pamplona (€3,028/m2). On the other hand, the most affordable provincial capital is Zamora with €1,269/m2.

Municipalities

The average price of second-hand housing rises in 84% of the 655 municipalities with year-on-year variation analyzed by Fotocasa. In 53 (8%) of the municipalities, the year-on-year value of housing rises by more than 20%, specifically in eight of these municipalities, it rises by over 40%, namely Torre-Pacheco (57.3%), San Miguel de Salinas (50.2%), Mutxamel (45.9%), Santiago del Teide (44.8%), Paiporta (42.4%), Cájar (42.0%), Benahavís (41.0%), and Casares (40.0%).

As for the price per square meter in January, we see that the order of the most expensive cities is Eivissa with €6,747/m2 and Donostia – San Sebastián with €6,058/m2. On the other hand, the most affordable municipalities are Malagón with €505/m2 and La Carolina with €636/m2.

Madrid Districts

The average price of second-hand housing rises in all 21 districts with year-on-year variation analyzed by Fotocasa. The five most pronounced increases in housing correspond to the districts of Centro (20.1%), Barrio de Salamanca (17.7%), Moncloa – Aravaca (12.8%), Tetuán (11.9%), and Moratalaz (11.6%).

Regarding the price per square meter in January, we see that the four most expensive districts are Barrio de Salamanca with €8,636/m2, Centro with €6,854/m2, Chamberí with €6,673/m2, and Chamartín with €6,071/m2. On the other hand, the districts with the most affordable housing prices are Villaverde with €2,032/m2

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