Super Surge: Housing Prices in Spain Ascend by 0.4% Throughout August

The price of used homes in Spain saw a modest increase of 0.4 per cent in August, reaching an average of 2,004 euros per square metre.

This figure is 7.2 per cent higher than the same month last year, though it remains 5.3 per cent below the historical peak recorded in June 2007, according to the latest real estate price index from Idealista.

Across Autonomous Communities

In a diverse landscape, twelve Spanish autonomous communities witnessed higher prices compared to the previous month.

Leading the way was the Canary Islands with a 1.4 per cent increase, closely followed by La Rioja (1.1 per cent), Asturias (1 per cent), Cantabria (0.9 per cent), the Basque Country (0.8 per cent), Andalusia, and the Valencian Community (both at 0.7 per cent).

The most modest increases were in Castilla-La Mancha (0.5 per cent), Aragon (0.4 per cent), the Balearic Islands (0.3 per cent), Navarra, and Galicia (0.2 per cent). Extremadura, however, saw a slight decrease of -0.6 per cent, leading the pack in terms of price drops, followed by Catalonia (-0.4 per cent), the Region of Murcia (-0.2 per cent), the Community of Madrid, and Castile and León (both at -0.1 per cent).

At present, the Balearic Islands, with an average price of 3,987 euros per square metre, stand as the most expensive autonomous community, trailed by the Community of Madrid at 3,139 euros per square metre. The Basque Country (2,844 euros per square metre) and Catalonia (2,345 euros per square metre) also find themselves among the pricier regions.

At the other end of the spectrum, Castilla-La Mancha (907 euros per square metre), Extremadura (943 euros per square metre), and Castile and León (1,156 euros per square metre) offer more affordable housing options.

Provincial Insights

Across provinces, 35 of them experienced price increases compared to the previous month.

Gipuzkoa saw the most significant surge at 2 per cent, closely followed by Santa Cruz de Tenerife (1.9 per cent), Huesca (1.9 per cent), Albacete (1.7 per cent), Malaga (1.3 per cent), and Almeria, and Huelva (both at 1.2 per cent). In contrast, Badajoz (-1.1 per cent) witnessed the most substantial drop in seller expectations, followed by Barcelona (-0.6 per cent), Segovia, Ávila, and Salamanca (all at -0.4 per cent).

The Balearic Islands continue to lead the pack as the most expensive province to buy a home (3,987 euros per square metre), ahead of Gipuzkoa (3,490 euros per square metre). They are followed by Madrid (3,139 euros per square metre), Malaga (3,002 euros per square metre), Vizcaya (2,738 euros per square metre), and Barcelona (2,671 euros per square metre).

On the other end of the spectrum, Ciudad Real stands as the most affordable province with an average price of 752 euros per square metre, followed by Cuenca (790 euros per square metre) and Jaén (820 euros per square metre).

Capital City Chronicles

In August, 40 capital cities across Spain saw an increase in housing prices.

Santa Cruz de Tenerife witnessed the most significant spike, with seller expectations growing by 4.2 per cent. Santander (3.3 per cent), Teruel (2 per cent), Castellón de la Plana (2 per cent), and San Sebastián (1.9 per cent) followed suit.

On the flip side, A Coruña and Cuenca both saw a decline of -0.9 per cent, with Segovia (-0.5 per cent) and Badajoz (-0.4 per cent) also experiencing price reductions.

Housing prices in August rose by 0.1 per cent in Barcelona and 0.3 per cent in Madrid. As a result, prices in the capital city now average 4,015 euros per square metre, while in Barcelona, they reach 4,141 euros per square metre.

San Sebastián takes the crown as the most expensive capital city in Spain, with a price of 5,326 euros per square metre.

On the opposite end of the spectrum, Jaén is the most affordable capital city, with prices averaging 1,113 euros per square metre, followed by Zamora (1,126 euros per square metre) and Lleida (1,174 euros per square metre).