Malaga is seeing record property prices
The price of second-hand housing in Spain fell by -0.7% in August. Compared to the same month in 2023, the price increased by 8.5%. This brings the average cost per square metre to 2,327 euros. This last year-on-year value (8.5%) is the second highest increase in the last 12 months.
Spain has gone from a year-on-year variation of 7.9% in August 2023 to 8.5% in the same period in 2024. In the last 12 months analysed, the price of housing has increased by 182 euros per square metre, rising from 2,145 euros/m² in August 2023 to 2,327 euros/m² in August 2024.
“The price of housing continues to rise and increase at a significant rate due to the imbalance between supply and demand that is becoming more and more pronounced. Spain’s housing capacity in the most sought-after areas is being compromised. At the moment, the limited supply cannot absorb the intense demand for purchases, which causes strong tension in prices. This context of such high price increases has been occurring for two consecutive years, since the rise in interest rates by the European Central Bank. However, now, with the de-escalation of rates, reductions in the Euribor and improvement in mortgage conditions, it is feared that demand will become even stronger, putting more pressure on the supply of available housing,” explained María Matos, director of Studies for Fotocasa.
Price by Autonomous Community
Looking at the price of second-hand property for sale in Spain compared to a year ago, we see that 17 communities saw a rise in the year-on-year price in August. Increases of more than 10% were seen in six communities. They are Madrid (19.2%), Balearic Islands (16.7%), Valencian Community (16.3%), Canary Islands (13.6%), Andalusia (13.4%) and Region of Murcia (11.2%). They are followed by the communities of Galicia (9.1%), Cantabria (8.9%), Asturias (7.3%), the Basque Country (6.0%), Castilla-La Mancha (4.6%), Castilla y León (3.2%), Extremadura (2.4%), Catalonia (2.3%), Navarra (1.9%), Aragon (1.9%) and La Rioja (1.7%).
As for the ranking of Autonomous Communities with the most expensive second-hand housing prices in Spain, the Balearic Islands and Madrid are found with prices of 4,407 euros/m² and 4,181 euros/m², respectively. They are followed by the Basque Country (3,193 euros/m²), Catalonia (2,819 euros/m²), the Canary Islands (2,624 euros/m²), Andalusia (2,166 euros/m²), Navarre (2,066 euros/m²), Cantabria (2,043 euros/m²), Valencian Community (1,971 euros/m²), Galicia (1,852 euros/m²), Asturias (1,758 euros/m²), Aragon (1,738 euros/m²), La Rioja (1,673 euros/m²), Castile and Leon (1,511 euros/m²), Region of Murcia (1,425 euros/m²), Extremadura (1,228 euros/m²) and Castile-La Mancha (1,226 euros/m²).
Provinces
In 44 of the 50 provinces analysed (88%) the year-on-year price of housing rose in August. In 16 provinces it exceeded 10%, specifically in Malaga (20.0%), Madrid (19.2%), Alicante (17.7%), the Balearic Islands (16.7%), Pontevedra (14.0%), Granada (13.9%), Las Palmas (12.9%), Segovia (12.7%), Valencia (12.1%), Toledo (11.9%), Cadiz (11.6%), Girona (11.6%), Castellón (11.4%), Santa Cruz de Tenerife (11.3%), Murcia (11.2%) and Lleida (10.6%). Provinces with year-on-year decreases are: Córdoba (-0.01%), Ávila (-0.1%), Jaén (-0.2%), Soria (-0.3%), Teruel (-3.9%) and Cuenca (-5.3%).
As for prices, the Balearic Islands and Madrid have exceeded 4,000 euros per square metre. The two provinces with the highest prices are: the Balearic Islands is the most expensive province with 4,407 euros/m², followed by Madrid with 4,181 euros/m². On the other hand, the province with the price per square metre below 1,000 euros is Ciudad Real with 964 euros/m².
