Spanish Housing Market Booms: 8.1% Surge in Used Housing Prices in 2023

The price of used housing in Spain increased by 8.1 per cent in 2023, reaching a cost of 2,042 euros per square metre.

The figures are according to the latest idealista price index.

The quarterly variation shows a 1.7 per cent increase in prices since the summer.

Several factors have contributed to this price growth, including high demand, insufficient supply (especially in new construction), and increased international demand, particularly in the archipelagos and the Mediterranean coast.

Notably, no capital has seen a decrease in house prices over the last 12 months.

Soria leads in price increases with a 23.1 per cent rise, followed by Santa Cruz de Tenerife (20.9 per cent) and Huesca (18.5 per cent). Among larger markets, Alicante (17.5 per cent), Malaga (14.1 per cent), Valencia (12.9 per cent), and Palma (12 per cent) have experienced notable increases.

The increase in prices has been more moderate in Madrid (6.1 per cent), San Sebastián (4.6 per cent), Seville (4.2 per cent), Barcelona (2.6 per cent), and Bilbao (2.3 per cent).

The smallest increases occurred in Zamora (0.1 per cent), Tarragona (1.4 per cent), Vitoria (1.8 per cent), and Córdoba (1.8 per cent).

San Sebastián is the most expensive Spanish capital (5,365 euros/m2), followed by Barcelona (4,167 euros/m2), Madrid (4,118 euros/m2), Palma (3,877 euros/m2), and Bilbao (3,241 euros/m2). On the other end, Zamora is the cheapest capital, with a price of 1,118 euros/m2.

All Autonomous Communities in Spain have reported higher prices than 12 months ago.

The largest increase occurred in the Canary Islands, where owners’ expectations rose by 15.9 per cent in 2023.

Other regions with significant increases include the Balearic Islands (12.7 per cent), Comunitat Valenciana (11.3 per cent), Andalusia (9.9 per cent), and Murcia (9.8 per cent).

The smallest increases were in Extremadura (1.7 per cent), Catalonia (1.9 per cent), and Asturias (2.1 per cent).

The Balearic Islands maintain their position as the most expensive autonomy, with 4,083 euros/m2, followed by Madrid (3,208 euros/m2), Euskadi (2,864 euros/m2), the Canary Islands (2,432 euros/m2), and Catalonia (2,339 euros/m2).

Castilla La Mancha (917 euros/m2), Extremadura (959 euros/m2), and Castilla y León (1,176 euros/m2) are the most affordable communities.

Only four provinces have experienced price drops in 2023, with Zamora (-2.9 per cent), Ourense (-1.3 per cent), Barcelona (-1.3 per cent), and Ciudad Real (-0.6 per cent) showing decreases.

Conversely, Santa Cruz de Tenerife saw the highest increase, with a 20.2 per cent rise, followed by the Balearic Islands (12.7 per cent), Soria (12.2 per cent), Malaga (11.3 per cent), Alicante (11 per cent), Valencia (10.4 per cent), and Las Palmas (10.3 per cent).

In Madrid, the price rose by 4.8 per cent.

The ranking of the most expensive provinces is led by the Balearic Islands, with 4,083 euros/m2, followed by Guipúzcoa (3,505 euros/m2), Madrid (3,208 euros/m2), Malaga (3,079 euros/m2), Vizcaya (2,758 euros/m2), and Barcelona (2,638 euros/m2).

Ciudad Real is the most economical province (745 euros/m2), followed by Jaén (830 euros/m2) and Cuenca (852 euros/m2).