House prices went up 7.5% in January
The price of second-hand housing increased 7.5% in January, when compared to the same month in the previous year. This brings the average cost per square metre to 2,215 euros. When compared to December 2023, the monthly increase was just 0.6%.
“House prices begin 2024 with robust growth, leaving behind the trend of moderation and confirming a new pace of acceleration. Significant increases in prices – double digits – are detected in the main stressed communities. At the provincial capital level, Madrid, Las Palmas and Málaga begin 2024 reaching maximum prices. The population and tourist attraction capacity of these cities generates a demand too strong for the supply to absorb and that pushes prices upward. After the ECB’s statements opening the door to a rate cut before next summer, an even stronger purchasing demand is expected that could make housing prices even more expensive,” explained María Matos, Director of Studies for Fotocasa.
Autonomous Communities
If we look at the prices of second-hand homes for sale in Spain compared to a year ago, we see that 16 communities increased the year-on-year price in January. We saw increases of more than 10% in six communities in January and they are the Canary Islands (23.7%), the Balearic Islands (15.2%), Madrid (12.7%), the Region of Murcia (11.1%), Community of Valencia (11.0%) and La Rioja (10.5%). They are followed by 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 by price with the most expensive second-hand housing prices first, we have the Balearic Islands and Madrid, with prices of €3,872 p/m² and €3,852 p/m², respectively. They are followed by the Basque Country (€3,087 p/m²), Catalonia (€2,771 p/m²), the Canary Islands (€2,450 p/m²), Navarra (€2,050 p/m²), Andalusia (€2,010 p/m²), Cantabria (€1,933 p/m²), Aragon (€1,768 p/m²), Comunitat Valenciana (€1,766 p/m²), Galicia (€1,713 p/m²), La Rioja (€1,695 p/m²), Asturias (€1,657 p/m²), Castilla y León (€1,480 p/m²), Region of Murcia (€1,320 p/m²) , Castilla-La Mancha (€1,202 p/m²) and Extremadura (€1,194 p/m²).
Provinces
In 88% of Spanish provinces, the year-on-year price of housing increased in January. In 12 provinces, the increase exceeded 10%, specifically in Santa Cruz de Tenerife (28.7%), Málaga (19.9%), Las Palmas (15.7%), the Balearic Islands (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 showing negative variation were: Araba – Álava (-0.1%), Zamora (-0.3%), León (-0.5%), Ciudad Real (-1.1%), Jaén (-1.7%) and Badajoz (-3.6%).
Regarding price ranking, the Balearic Islands are the most expensive province with €3,872 p/m², followed by Madrid (€3,852 p/m²) and Gipuzkoa (€3,482 p/m²), among others. The only province with a price per square meter below 1,000 euros is Ciudad Real with €979 p/m².
