·               Buying a house means an outlay of 2,176 euros per square metre

• San Sebastián is the most expensive city in the country, with an average of 5,533 euros

Author: Lorena Torío

Source: El Economista 09/03/2024

The price of second-hand housing continues to rise and once again marks a new milestone. The month of August closed with a year-on-year increase of 8.6%, reaching an average of 2,176 euros/m2. The increase was 1% compared to the previous month and 2.6% on a quarterly basis, according to the idealista property price index. The previous record was set in June, when prices exceeded 2007 levels, in the midst of the property bubble.

The current residential supply is unable to withstand the growing pressure of demand, which is dragging almost all territories in the country to levels never seen before. In addition, prices are rising at an accelerated rate; As an example, the report from the real estate portal explains that in thirteen provincial capitals the value of houses grew by more than 10%.

The most pronounced increase occurred in Soria, with an annual increase of 19.6%. It was followed by other large markets such as Malaga (18.3%), Madrid (17.5%), Alicante (17.2%) and Valencia (16.9%). They were joined by Santander (14.8%), Granada (14.6%), Toledo (11.6%) or Girona (11%).

Among the large markets, prices have grown in Palma (10.6%), Barcelona (9.3%), Seville (7.8%), Bilbao (6.9%) and San Sebastian (3.9%). All the capitals experienced increases in the price of housing during the last year, except Palencia, where sellers’ expectations fell by a modest 0.3%.

San Sebastian is confirmed as the most expensive city in the country to become a homeowner, with an average of 5,533 euros/m2. The next places are occupied by Madrid (4,717 euros/m2), Barcelona (4,528 euros/m2) and Palma (4,272 euros/m2). The most affordable cities to buy a house are Zamora (1,171 euros/m2), Jaén (1,203 euros/m2) and Ciudad Real (1,265 euros/m2).

The idealista analysis by autonomous communities also reveals that all territories have prices higher than those of the previous year. The increases in the Canary Islands (16.8%) stand out, leading the rises, followed by the Community of Madrid (13.2%), the Balearic Islands (13.2%), the Valencian Community (12.3%) and the Region of Murcia (11.3%).

With lower increases are Andalusia (8.9%) and Cantabria (7.7%). Below 5% are the increases in Navarra (4.3%), La Rioja (4.3%), Euskadi (4.2%), Extremadura (4%), Aragón (3.8%), Castilla-La Mancha (3.7%), Cataluña (3.6%), Castilla y León (3.6%), Galicia (3.6%) and Asturias (2.8%).

The Balearic Islands, with 4,512 euros/m2, are the most expensive autonomous region, followed by the Community of Madrid (3,554 euros/m2). They are followed by Euskadi (2,962 euros/m2), the Canary Islands (2,682 euros/m2) and Catalonia (2,430 euros/m2). On the opposite side of the table we find Castilla-La Mancha (941 euros/m2), Extremadura (981 euros/m2) and Castilla y León (1,197 euros/m2), which are the most economical communities.

Balearic Islands, the most expensive province

Up to 47 provinces registered price levels higher than those of August 2023. The performance of Santa Cruz de Tenerife stands out, where sellers’ expectations rose by 18.6%, followed by Las Palmas (14.3%), Community of Madrid (13.2%), Balearic Islands (13.2%), Malaga (12.5%) and Alicante (12.2%). On the other hand, buying a house is only cheaper in three territories: Ourense (-2.8%), Ciudad Real (-0.7%) and Córdoba (-0.4%).

The Balearic Islands reaffirm their position as the most expensive province to buy a home (4,512 euros/m2) ahead of Guipúzcoa (3,601 euros/m2). They are followed by Madrid (3,554 euros/m2), Malaga (3,377 euros/m2), Vizcaya (2,846 euros/m2), Santa Cruz de Tenerife (2,827 euros/m2) and Barcelona (2,735 euros/m2). Ciudad Real is the cheapest province with a price of 747 euros per square metre. It is followed by Jaén (840 euros/m2) and Cuenca (849 euros/m2).