Bubble or new cycle? The price of second-hand housing reaches its all-time high in July.

Spain’s second-hand housing market is experiencing one of its strongest peaks, with prices reaching record highs. According to the real estate portal Idealista, the average value per square meter closed July at €2,471, the highest level since records began. This represents a 14.7% year-on-year increase in the price of used homes.

The rise is not only annual. Data shows that in the last quarter prices grew by 5.1%, and in just the past month they rose by 1.4%. This accelerated pace of increases has reignited the debate over a possible new housing bubble in Spain, as well as the impact of the shortage of new builds, the boom in residential tourism, and the growth of holiday rentals on the market’s evolution.

Within this upward trend, Madrid leads the ranking of increases, while the Balearic Islands stand as the most expensive region in the country. All regions today register higher prices than a year ago, although with major differences. The Community of Madrid stands out with a 24.4% rise in second-hand home prices over twelve months, followed closely by the Region of Murcia (+19.3%) and the Valencian Community (+18%). In Barcelona, one of the markets under the most pressure, the year-on-year growth is 10.4%.

By contrast, regions such as Extremadura, where the rise has been only 0.3%, and Navarra (+1.4%) show minimal increases. These contrasts highlight how access to housing is becoming increasingly unequal between Spain’s autonomous communities. The Balearic Islands, with an average of €5,025/m², top the list of the most expensive regions, followed by Madrid (€4,359/m²) and the Basque Country (€3,263/m²). At the other end, Extremadura and Castilla-La Mancha remain significantly cheaper, with €979 and €982/m² respectively.

The price surge is also evident at the provincial level. A total of 43 provinces have seen increases in second-hand housing values, with Madrid (+24.4%), Valencia (+20.1%), and Santa Cruz de Tenerife (+18.6%) leading the way. However, provinces such as Ourense (-6.9%), Teruel (-2%), and Ciudad Real (-1.7%) have recorded declines, reflecting differences in local demand.

Among all provinces, the Balearic Islands consolidate their position as the most exclusive, with square meter prices at €5,025, ahead of Madrid, Guipúzcoa, and Málaga. On the opposite end, Ciudad Real, with an average of €738/m², is the most affordable province to buy a second-hand home.

Finally, when analyzing provincial capitals, 51 have seen increases in second-hand housing prices over the past year, except Girona, where prices fell by 2.6%. Santa Cruz de Tenerife leads the capital city increases, with an impressive 25.1% rise.