Double-digit price rises seen in May
The price of second-hand housing in Spain increased by 1.1% in May, when compared to April, while the annual increase was 7.7%. This brings the average cost per square metre to €2,294 p/m². Although prices continue to rise significantly, the annual increase is 2.5% points lower than the annual increase of 10.2% seen in May.
“Housing prices maintain a relatively stable growth rate, but with very significant levels of increase. Furthermore, the year-on-year increase of 7.7% is added to the 10.2% increase in May 2023, so the increase in prices in recent years is huge. The changes seen in the most stressed communities are worrying, showing double-digit and very intense increases. The purchasing demand at the moment is strong and too firm for the supply to absorb it, so the tension in prices has been constant for two years,” commented María Matos, Director of Studies and spokesperson for Fotocasa.
Price Increases
Looking at prices for second-hand homes for sale in Spain compared to a year ago, 17 communities saw prices rise in May. Those with increases above 10% include: the Canary Islands (24.2%), Madrid (18.6%), Valencian Community (14.0%), the Balearic Islands (13.1%) and Andalusia (11.6%). They are followed by the communities of the Region of Murcia (9.4%), Galicia (6.8%), the Basque Country (6.7%), Cantabria (6.2%), Asturias (5.4%), Navarra (4.1%), La Rioja (3.8%), Castilla-La Mancha (3.1%), Castilla y León (2.2%), Catalonia (2.1%), Aragon (1.9%) and Extremadura (0.8%).
Regarding the ranking of Autonomous Communities, we see the most expensive second-hand housing in Spain is in the Balearic Islands and Madrid with prices of €4,159 p/m² and €4,085 p/m², respectively. They are followed by the Basque Country with €3,167 p/m², Catalonia with €2,801 p/m², the Canary Islands with €2,637 p/m², Andalusia with €2,118 p/m², Navarra with €2,094 p/m², Cantabria with €1,979 p/m², Valencian Community with €1,876 p/m², Galicia with €1,786 p/m², Aragón with €1,724 p/m², Asturias with €1,695 p/m², La Rioja with €1,658 p/m², Castilla y León with €1,498 p/m², Region of Murcia with €1,366 p/m², Extremadura with €1,225 p/m² and Castilla-La Mancha with €1,205 p/m².
Provinces
In 88% of the 50 provinces analysed, the year-on-year price of housing increased in the month of May. In 13 provinces increases exceeded 10%, specifically in Santa Cruz de Tenerife (31.4%), Málaga (21.9%), Madrid (18.6%), Alicante (16.5%), Las Palmas (14.8%), Granada (14.3%), Balearic Islands (13.1%), Segovia (12.1%), Pontevedra (11.6%), Valencia (10.7%), Valladolid (10 .6%), Lleida (10.4%) and Girona (10.1%),
Regarding prices, Madrid and the Balearic Islands have exceeded 4,000 euros per square meter. The two provinces with the highest price are: the Balearic Islands is the most expensive province with €4,159 p/m², followed by Madrid (€4,035 p/m²). On the other hand, the only province with a price per square meter below 1,000 euros is Ciudad Real with €957 p/m².
