House prices in Spain have risen by 11.2% year-on-year in the last quarter of the year. This rise leaves the price of a square meter at 2,271 euros according to the latest idealista price index . Looking at the quarterly variation, prices have increased by 4.1% in the last three months. With this price, Spain has reached a new historical high.
According to Francisco Iñareta, spokesperson for idealista , “ over the last 12 months we have seen the consequences of a perfect storm in the sales market in the form of the disappearance of supply. The criminalization of housing construction in recent years, the lack of foresight in land development, the absence of political dialogue seeking solutions, the populist noise around housing, bureaucratic labyrinths, the significant shortage of labor, the disappearance of construction companies and specialised companies and the population increase have left the most dynamic markets in the country without housing.”
“The already significant demand is being joined by new families, encouraged by the reduction in financing costs and the lack of a ceiling on prices. If the supply problem is not resolved, this will result in greater tension in prices ,” the expert said.
More than a dozen capitals set record housing prices
All Spanish capitals have seen their prices rise in the last 12 months, except in Huesca where they fell by 0.4%. Valencia leads the price rise , after rising by 24% in the last year. It is followed by Malaga (21.5%), Madrid (20.2%) and Alicante (18.2%).
Next in line are Santander (16.9%), A Coruña (14.7%) and Palma (14.6%). In the other major markets, prices have also risen in Barcelona (12.8%), Seville (8.9%), Bilbao (7.7%) and San Sebastián (5.9%). The smallest increases have occurred in Ourense (1.2%), Palencia (1.9%) and Melilla (3.1%).
San Sebastian is the most expensive Spanish capital (5,681 euros/m2) , followed by Madrid (4,952 euros/m2), Barcelona (4,700 euros/m2), Palma (4,442 euros/m2) and Bilbao (3,491 euros/m2). At the other end of the table is Zamora, the cheapest capital, with a price of 1,168 euros/m2. 13 of the 52 provincial capitals analyzed have recorded maximum prices in December.
Madrid, the Canary Islands and Murcia lead the annual increases at the end of 2024
Prices have increased in all the autonomous communities over the last 12 months. The largest increase has been recorded in Madrid, where homeowner expectations have increased by 17.5%. Also with double-digit increases are the Canary Islands (17%), Murcia (16.3%), the Valencian Community (16%), the Balearic Islands (15.3%), Andalusia (11.5%) and Cantabria (11.1%). La Rioja registered the lowest increase, with 1.6% year-on-year, followed by Extremadura (2.8%), Castile and Leon (3.5%), Castile-La Mancha (4.4%) and Galicia (4.5%). In Catalonia the increase was 6.7%.
The Balearic Islands remain the most expensive autonomous community, at 4,707 euros/m2, which is the highest price since idealista has records. Next in line is Madrid (3,771 euros/m2), which also recorded its highest price ever. In third place is the Basque Country (3,076 euros/m2) followed by the Canary Islands (2,846 euros/m2). On the other side of the table we find Castilla-La Mancha (957 euros/m2), Extremadura (986 euros/m2) and Castilla y León (1,216 euros/m2), the most affordable communities.
If you are thinking of moving to Valencia and buying a property, now is the time to do it. Let us help you navigate the Spanish real estate market and advise you with your international move.
Source: Idealista
Comments