The price of second-hand housing in Spain has registered an increase of 0.4% during the month of January, standing at 2,049 euros/m2, according to the latest real estate price index. This figure is 8.2% higher than that of the same month last year, while it is 3.2% below the historical maximum price of housing in Spain, recorded in June 2007.
For the sixth consecutive month, since August 2023, the supply of houses for sale exceeds 2,000 euros/m2, a figure that has not been repeated since July 2008.
The Balearic Islands are confirmed as the autonomy with the most expensive housing price in Spain
14 Autonomous Communities show prices higher than last month. The Balearic Islands (1.6%) lead the increases, followed by the Canary Islands (1.3%), Comunidad de Madrid (1.2%) and Comunitat Valenciana (1%).
Below 1% are the increases in Extremadura (0.9%), Cantabria (0.7%), Navarra (0.6%), Region of Murcia (0.5%), Galicia (0.4% ), Castilla y León (0.2%), Catalonia (0.2%), Andalusia, La Rioja and Euskadi (0.1% in all three cases). Asturias and Aragon, on the other hand, are the only regions in which the price has fallen since sellers’ expectations have fallen by 0.1%. In Castilla-La Mancha, prices have remained unchanged during the month of January.
The Balearic Islands, with 4,148 euros/m2, is the most expensive autonomy followed by the Community of Madrid (3,247 euros/m2). They are followed by Euskadi (2,867 euros/m2), the Canary Islands (2,463 euros/m2) and Catalonia (2,344 euros/m2). On the opposite side of the table, we find Castilla-La Mancha (917 euros/m2), Extremadura (967 euros/m2) and Castilla y León (1,178 euros/m2), which are the most economical communities.
Lleida and Las Palmas lead the monthly increases between provinces
Up to 36 provinces have prices higher than those registered in the previous month. The biggest increases have been experienced in Lleida and Las Palmas, where sellers’ expectations have risen by 1.9%, followed by the Balearic Islands (1.6%), Badajoz and Madrid (1.2% in both cases). On the opposite side, we find Soria (-2.3%), which is the province where the price of used housing decreases the most, followed by Cuenca (-1.4%), Zamora (-1.3%) and Huesca (-0.5%).
The Balearic Islands are reaffirmed as the most expensive province to purchase a home (4,148 euros/m2) ahead of Guipúzcoa (3,502 euros/m2). They are followed by Madrid (3,247 euros/m2), Málaga (3,099 euros/m2), Vizcaya (2,756 euros/m2) and Barcelona (2,650 euros/m2).
Ciudad Real is the cheapest province with a price of 746 euros for each square meter. They are followed by Jaén (831 euros/m2) and Cuenca (840 euros/m2).
Madrid, Malaga and Palma set record prices for housing for sale
During the month of January, 38 capital cities have experienced increases in housing prices. The most pronounced increase is that experienced by Barcelona and Lleida, where sellers’ expectations grew by 2.2%, followed by Huelva (2.1%), Girona (2.1%) and Badajoz (2%). Santa Cruz de Tenerife (-2.7%), on the other hand, leads the price falls in the last month, followed by Tarragona (-1.7%), Soria (-1.4%) and Zamora (-0 .9%).
With this increase, the price in Barcelona is set at 4,259 euros/m2. In Madrid, meanwhile, the price has risen 1.7% to 4,190 euros/m2. San Sebastián is the most expensive capital in Spain, placing its price at 5,367 euros/m2. Zamora, on the other hand, is the cheapest capital with its 1,108 euros/m2, followed by Jaén (1,145 euros/m2) and Lleida (1,193 euros/m2).
Strong demand and profitable investment
The rise in interest rates is preventing many lower-middle class families from accessing a mortgage to buy a new home, although households with savings and a higher income level are not being affected by this situation.
In the used housing and rental market, demand also remains very high, as proven by the express sales and rentals that Idealista periodically analyzes. “In cities like Madrid, the homes that were sold in the month of November had been sold for less than a month. It’s a barbarity. In the case of rentals, around 25-30% of the ads do not last even 24 hours when the price is entered. Of course, the demand is very fast, it is there and it is very alive,” explains Iñareta.
What also remains is the interest of small and large investors in housing. As the idealista spokesperson recalls, “the profitability of housing is very high and continues to be at the same level, if we talk about net profitability, of which, for example, 10-year State Bonds are offering, which is around 4 % but with much less risk In general terms, in Spain the gross profitability would be around 7%, but cities like Lleida or Murcia would be around 8%, while Madrid and Barcelona would be below. Although as we predict that rental prices are going to rise more than sales prices, it is likely that these percentages will rise.”
Beatriz Toribio also believes that “the purchase of housing continues to arouse interest, especially in new construction and in housing to make profitable rentals”, although in the latter there is a tendency to ‘wait and see’ given the economic context, rates, etc. ”. But sometimes waiting is not the best option, “especially for those who are looking for a return on their investment, because the demand for rentals is so high that, at a time like the current one in which interesting assets can emerge, it is the time in which many small and medium investors choose to enter and make their savings profitable.” Furthermore, the general secretary of APCE emphasizes that “in the case of new construction, the supply is so small that it is quickly absorbed by a demand with the capacity for savings and financing, which is fundamentally for replacement.”
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