House prices in Spain rise 0.9% in the third quarter

The price stands at 2,007 euros/m2. Prices increase monthly (0.2%) and year-on-year (7.5%)

The price of used housing in Spain registered an increase of 0.9% during the third quarter of the year. This increase leaves the square meter at 2,007 euros, according to the latest price index. Considering the annual variation, prices have increased by 7.5% in the last 12 months.

Neither the drop in sales nor the increase in financing costs is having a big influence. The major parameter that most affects real estate right now is the lack of housing supply for sale, a widespread phenomenon throughout the territory, which is responsible for prices continuing to rise.

Christian Boesen from homes-abroad.com adds that "we must not forget that there is still an important part of the demand that is highly qualified and has resources, so it hardly needs financing. According to the latest official data, more than half of the operations are do without financing and the data we manage tells us that the majority of those who are looking to buy a home currently already own another home, which facilitates the process and reduces the financial costs of the operation. And he continues, "to this must be added the strength of foreign demand, especially intense on the Mediterranean coast and the islands. All this causes that, far from registering falls in prices, housing continues to rise, registering historical highs in the more dynamic markets such as Barcelona, Palma de Mallorca, Alicante, Valencia or Málaga, although the trend is towards stabilization.”

The large capitals saw how sellers' expectations increased.

There are 12 capitals that have seen housing prices decrease in these three months. The biggest increase has occurred in Malaga, where they have grown by 4.3%, followed by Palma (3.2%) and Alicante (2.9%). The cities of Madrid, Barcelona and Bilbao have shared a growth of 0.6% in the last three months, while Seville has remained at 0.2%.

The largest increases have been registered in Santa Cruz de Tenerife, where they grew by 8.7%, Huesca (7.5%), Ávila (5.6%) and Almería (5.5%). Eight cities set historic highs in this month of September: Madrid, Melilla, San Sebastián, Cádiz, Palma, Pontevedra, Málaga and Santa Cruz de Tenerife.

San Sebastián is the most expensive Spanish capital (5,355 euros/m2), followed by Barcelona (4,155 euros/m2), Madrid (4,037 euros/m2), Palma (3,909 euros/m2) and Bilbao (3,191 euros/m2). On the opposite part of the table, we find Zamora, the cheapest capital, with a price of 1,116 euros/m2.

Prices fall slightly in Catalonia and Madrid

During the third quarter of 2023, prices have grown in 11 autonomous communities. The largest increases are recorded in the Canary Islands, where owners increased their expectations by 4%. In the Valencian Community, the increase is 2.2% while in the Balearic Islands it is 2%, the same as in Andalusia. On the contrary, Catalonia marks the biggest drop, since prices have fallen by 1.2%. They are followed by the declines in Navarra (-1.1%), Extremadura (-0.8%) and Madrid (-0.4%). Three communities set historic highs in their prices: Andalusia, the Canary Islands, and the Balearic Islands.

The Balearic Islands continue to be positioned as the most expensive autonomy, with 4,034 euros/m2. It is followed by Madrid (3,129 euros/m2), Euskadi (2,845 euros/m2) and, then, the Canary Islands (2,336 euros/m2) and Catalonia (2,333 euros/m2). On the opposite side of the table, we find Castilla-La Mancha (906 euros/m2), Extremadura (946 euros/m2) and Castilla y León (1,151 euros/m2), the most economical communities.

15 provinces have experienced price drops during the third quarter of the year.

The largest occurred in Ourense (-1.9%). They are followed by Zamora (-1.7%), Álava (-1.6%), Salamanca (-1.5%), Badajoz (-1.4%), Barcelona (-1.1%) and Navarra (- 1.1%). On the contrary, the biggest increase was for the Santa Cruz de Tenerife brand, with an increase of 5.6%. The following positions are occupied by Málaga (3%), Almería (2.8%) and Guipúzcoa (2.7%),

The ranking of the most expensive provinces is headed by the Balearic Islands, with 4,034 euros/m2, followed by Guipúzcoa (3,486 euros/m2). Behind them are Madrid (3,129 euros/m2), Málaga (3,037 euros/m2), Vizcaya (2,737 euros/m2) and Barcelona (2,665 euros/m2). Ciudad Real is the most economical province (752 euros/m2), followed by Cuenca (797 euros/m2) and Jaén (824 euros/m2).

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