The latest property price report from Spain: Are Spanish house prices going up or down?
The second-hand property market has recovered strongly, particularly in the Region of Murcia
The housing market in Spain appears to be recovering steadily in the first quarter of 2024, with prices rising and transaction numbers increasing thanks to relatively low interest rates and continuing demand from foreign investors. However, it's important to note that the market can and does vary significantly depending on the region, and some areas are certainly still feeling the effects of the pandemic and other economic factors.
Earlier this year, the experts predicted that over the next few months, second-hand sales would experience a slow-down as banks make it increasingly difficult for those with modest savings to secure a mortgage. Conversely, this doesn't impact new-build buyers as much, since they are usually clients who can save and later finance, or because they have sold a previous property and have cash ready.
And it seems that these predictions are holding true. According to the official data released at the beginning of March, the price of used housing in Spain experienced a slight increase of 0.4% in February, reaching an average price of 2,056 euros per square metre. This figure represents a 7.2% growth compared to the same period last year, but remains 2.8% below the historic peak of housing prices in Spain, which was recorded in June 2007.
The majority of Spain's autonomous communities saw an increase in housing prices in February, with 13 out of 19 communities experiencing positive growth. Leading the pack was the Canary Islands, with a 1.5% increase, followed closely by Madrid (1.4%), the Region of Murcia (1.1%) and the Balearic Islands and Extremadura (1% each).
Other communities that saw modest growth include Aragón (0.9%), Castilla-La Mancha (0.6%), Cantabria (0.6%), the Basque Country (0.6%), the Valencian Community (0.5%), Galicia (0.2%), Castilla y León (0.1%) and Andalucía (0.1%).
Meanwhile, Navarra (-0.6%), Catalonia (-0.2%) and Asturias (-0.1%) were the only regions where housing prices dropped.
The Region of Murcia stands out as one of the top performers in terms of annual growth, with a 7.2% increase in housing prices compared to the same month last year. This represents the third most significant increase among all autonomous communities. Furthermore, the community has seen a 2.4% increase in housing prices over the past quarter.
In terms of prices, the Balearic Islands continue to hold the title of the most expensive region to buy property, reporting an average cost of 4,191 euros per square metre. They are followed by the Spanish capital of Madrid (3,292 euros), the Basque Country (2,883 euros), the Canary Islands (2,501 euros) and Catalonia (2,338 euros).
On the other end of the spectrum, Castilla-La Mancha (922 euros), Extremadura (977 euros) and Castilla y León (1,180 euros) are the cheapest regions to set up home in Spain.
Overall, while the growth in housing prices has been fairly moderate so far this year, the data do suggest that the country's real estate market is continuing to stabilise, and that Spain continues to represent the dream for many home buyers.
Also of interest: Tax breaks you can get for buying property in small Spanish villages
Image: Freepik
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