The average price reached 2,046 euros/m² in November. Home prices have risen by over 10% in Navarra and the Balearic Islands
Author: Lorena Torío

Source: El Economista

For the first time in over three years—since May 2019—the price of second-hand homes has surged with such momentum in November, rising 7.1% year-on-year to reach an average of 2,046 euros/m², according to Fotocasa’s Real Estate Index. Prices have increased in nearly all capitals, provinces, and autonomous communities across the country, with some cases exceeding 16%, such as in Badajoz (16.8%) and Alicante (16.7%).

This significant increase is attributed to higher buyer demand in the market and a shortage of housing, which—at least for now—has counteracted the European Central Bank’s monetary policy changes. “The increase in home prices is also the highest of the year. This surge coincides with the change in monetary policy and the rise in interest rates, which, despite aiming to cool down housing demand, seem to have had the opposite effect on citizens, at least temporarily. Demand has risen in this last quarter and is putting pressure on prices,” explains María Matos, Director of Studies and spokesperson for Fotocasa. However, the real estate portal’s experts predict that buyers will moderate their search for homes as mortgage rates continue to rise.

Fotocasa’s analysis reveals that prices have increased compared to the previous year in 45 of the 50 provincial capitals. Additionally, seven of these have experienced price hikes exceeding 10%. Leading the way are Badajoz (16.8%), Alicante (16.7%), Santa Cruz de Tenerife (15.8%), Guadalajara (14.6%), and Palma de Mallorca (14.3%). Conversely, the five provincial capitals where prices have decreased compared to the previous year are Huesca (-6.6%), Palencia (-4.5%), Lugo (-1.9%), Tarragona (-0.1%), and Ourense, where no changes have been observed.