Market analysis – september 2024

The price of housing for sale rises by 8.6% year-on-year in August

The price stands at 2,176 euros/m2, a new high in the historical series | It rises by 17.5% in Madrid and 9.3% in Barcelona

The price of housing for sale in Spain has registered an increase of 8.6% year-on-year during the month of August, reaching 2,176 euros/m2, according to the latest real estate price index. This figure is established as the record for housing prices in Spain. It also represents an increase of 2.6% quarterly and 1% during the last month.

The Canary Islands, Madrid and the Balearic Islands lead the increases in housing prices in Spain

All the Spanish Autonomous Communities show higher prices compared to August of last year. The Canary Islands (16.8%) lead the rises, followed by the Community of Madrid (13.2%), the Balearic Islands (13.2%), the Valencian Community (12.3%), the Region of Murcia (11.3%), Andalusia (8.9%) and Catalonia (3.6%)

The Balearic Islands are the most expensive autonomous region with 4,512 euros/m2, followed by the Community of Madrid (3,554 euros/m2). They are followed by the Basque Country (2,962 euros/m2), the Canary Islands (2,682 euros/m2) and Catalonia (2,430 euros/m2).

The Balearic Islands are confirmed as the most expensive provinces to buy a home

As many as 47 provinces have prices higher than those registered a year ago. The biggest increases have been seen in Santa Cruz de Tenerife, where sellers' expectations have risen by 18.6%, followed by Las Palmas (14.3%), the Community of Madrid (13.2%), the Balearic Islands (13.2%), Malaga (12.5%) and Alicante (12.2%).

The Balearic Islands have reaffirmed their position as the most expensive province in which to buy a home (4,512 euros/m2), ahead of Guipúzcoa (3,601 euros/m2). They are followed by Madrid (3,554 euros/m2), Malaga (3,377 euros/m2), Vizcaya (2,846 euros/m2), Santa Cruz de Tenerife (2,827 euros/m2) and Barcelona (2,735 euros/m2).

Up to 13 capitals have recorded double-digit annual increases in the price of housing

All capitals have experienced increases in the price of housing over the last year. The most pronounced increase was seen in the cities of Malaga (18.3%), Madrid (17.5%), Alicante (17.2%), Valencia (16.9%) and Santander (14.8%).

Among the major markets, in addition to Malaga, Madrid, Alicante and Valencia, prices have risen in Palma (10.6%), Barcelona (9.3%), Seville (7.8%), Bilbao (6.9%) and San Sebastian (3.9%).

With this increase, the price in Madrid is set at 4,717 euros/m2, while in Barcelona the price has reached 4,528 euros/m2.

San Sebastian is the most expensive capital in Spain, with a price of 5,533 euros/m2. Zamora, on the other hand, is the cheapest capital with 1,171 euros/m2, followed by Jaen (1,203 euros/m2) and Ciudad Real (1,265 euros/m2).

Rental prices in Spain rise by 10% year-on-year in August

Prices stand at 13.1 euros/m2 | Rents rise by 11.8% in Barcelona and 14.3% in Madrid

August ended with a year-on-year rise in rental prices in Spain of 9.8%, set at 13.1 euros/m2, according to the latest price report published by idealista. In the last quarter, prices fell by 0.5%, while in the last month there were no changes.

Palma, Valencia and Madrid, the capitals that recorded the highest increases in rental prices

All Spanish capitals have higher prices compared to July last year. The most pronounced increase is in Palma, where landlords' expectations rose by 17.8%, followed by increases in Valencia (16.5%), Madrid (14.3%), Ávila (13.3%) and Cuenca (13.3%). On the other hand, Tarragona (1.3%) is the capital where rents have risen the least in the last year, followed by Cadiz (3.2%), Cordoba (4.4%), Huelva (4.6%) and Jaen (4.6%).

The performance of rents in the main markets of the country, in addition to Palma, Valencia and Madrid, has been totally bullish, with increases in Malaga (12.7%), Alicante (12.6%), Barcelona (11.8%), San Sebastian (6.8%), Seville (6.7%) and Bilbao (5.9%).

Barcelona continues to be the capital with the most expensive rents with a price of 21.6 euros/m2, followed by Madrid (19.9 euros/m2) and San Sebastian (18.1 euros/m2). They are followed by Palma (17.3 euros/m2), Malaga (14.5 euros/m2) and Valencia (14.2 euros/m2). On the other hand, Ciudad Real (6.6 euros/m2) and Zamora (6.6 euros/m2) are the capitals with the cheapest rents.

The Balearic Islands and Barcelona are the most expensive provinces to rent

The price of rent has risen in all Spanish provinces except Huelva, where it has fallen by 0.3% in the last year. The biggest increases have been seen in Cáceres (40.1%), Soria (18.1%), Cuenca (16.9%), Valencia (16.2%), Madrid (14.4%), Santa Cruz de Tenerife (13.9%) and Lugo (12.7%).

The Balearic Islands and Barcelona (18.5 euros/m2) are the most expensive provinces to rent a home in Spain, surpassing Madrid (18.2 euros/m2) and Guipúzcoa (16.5 euros/m2). They are followed by Málaga with 15.1 euros/m2 and Las Palmas with 14.3 euros/m2. Jaén and Ciudad Real (6.1 euros/m2 in both cases) together with Zamora (6.3 euros/m2 on the other hand, are the cheapest provinces.

Half of Spain registers maximum average rents

Rents have risen in all Spanish regions since July last year. Extremadura leads the increases (19.7%), followed by the Community of Madrid (14.4%), the Valencian Community (13.3%), the Balearic Islands (11.8%), Asturias (11.6%), the Canary Islands (10.8%) and Galicia (10.7%). Below 10% are the increases in Andalusia (9.5%), Catalonia (8.8%), Aragon (8.8%), the Basque Country (8.4%), Castile and Leon (8.2%), Cantabria (8.1%), Murcia (8%), Castile-La Mancha (7.6%), La Rioja (6.4%) and Navarre (4.8%).

The Balearic Islands (18.5 euros/m2) and the Community of Madrid (18.2 euros/m2) are the regions with the most expensive prices. They are followed by Catalonia (17 euros/m2), the Basque Country (14.1 euros/m2) and the Canary Islands (14 euros/m2). On the other side of the table we find Castilla-La Mancha (7.1 euros/m2) and Extremadura (7.3 euros/m2) which are the most affordable communities.

Record price of new housing: now close to 2,200 euros/m2

The average annualised price of housing, including new and used, has exceeded 2,000 euros/m2 for the first time since 2008, according to the registrars

The average price of housing in Spain continues to rise in Spain, and is doing so at an ever-increasing rate.

According to the Real Estate Registry Statistics published by the College of Registrars, the average price of housing has intensified its growth rate during the second quarter of the year, giving rise to a quarterly increase of 2.9%, compared to 0.8% in the previous quarter. up to 2,057 euros per m2.

This increase is mainly due to the rise in the price of used housing (3.8%), while that of new housing grew by 0.3%. With this increase in the second quarter of 2024, there are already four consecutive quarters of increases.

The annualized results, that is, for the last 12 months, show a more structural behavior, in which for the whole of Spain the average price of 2,004 euros/m2 has represented an accumulated year-on-year increase of 2.6%. This is the highest average since mid-2008, according to the historical series of the registrars. In the case of new housing, the average price was 2,194 euros/m2, which is a new record, while used housing was 1,958 euros/m2, the highest figure since the end of 2008.

The registrars remind that it is worth bearing in mind that new housing barely represents 20% of transactions and that, on occasions, it includes sales agreements with an average advance notice of two years, making the evolution of used housing prices more representative.

Where housing is more expensive and cheaper

By autonomous communities, the highest average prices in the second quarter were found in the Balearic Islands (3,534 euros), followed by Madrid (3,390 euros per square metre), the Basque Country (2,928 euros), the Canary Islands (2,528 euros) and Catalonia (2,500 euros). In contrast, the lowest prices were recorded in Castilla-La Mancha (876 euros) and Extremadura (813 euros), the only communities below 1,000 euros per square metre.

The study also reviews the most notable data by province and states that the highest housing prices during the second quarter were in the Balearic Islands (3,534 euros/m2), Guipúzcoa (3,423 euros), Madrid (3,390 euros), Barcelona (2,869 euros) and Vizcaya (2,790 euros), while the lowest average prices were recorded in the provinces of Ciudad Real (675 euros/m2), Cuenca (687 euros), Cáceres (774 euros) and Teruel (780 euros).

According to the registrars, up to 38 provincial capitals have registered positive year-on-year rates in prices, while San Sebastián (5,554 euros/m2), Barcelona (4,441 euros), Madrid (4,207 euros), Palma (3,471 euros) and Bilbao (2,989 euros) remain the most expensive in the country. On the other hand, the lowest average prices have been reached in Zamora (1,014 euros), Ciudad Real (1,062 euros) and Jaén (1,120 euros).

Fewer home sales

According to the report, between April and June 146,273 home sales were registered in the property registries, which represents a decrease of 3.4% compared to the previous quarter. With this data, the downward trend of the last quarters of 2023 is resumed, but in a more moderate way.

In new housing, 29,175 sales were registered, a 6.6% decrease on the previous quarter, while in used housing, 117,098 transactions were registered, with a quarterly decrease of 2.6%.

The accumulated data for the last 12 months show 567,784 home sales, a 1% decrease compared to the same period of the previous year, which reached 573,494 sales, maintaining the downward trend despite the "good" quarterly performance.

Fewer mortgages registered

As for the number of mortgages on housing, the figure has fallen to 108,910 transactions in the first quarter The year-end figures have seen a 14.3% drop compared to the previous quarter, a period in which it shot up by 21.1%.

According to the registrars, with this data, and as expected, the percentage of mortgages constituted on registered home sales has decreased significantly in the last quarter, specifically by 8.1 percentage points, standing at 63.8%; in line, on the other hand, with the proportion registered throughout 2023.

More foreign demand

Foreign demand for housing has reached 14.8% of sales, increasing by 0.6 percentage points compared to the previous quarter. Even so, the usual percentages since 2014, which were above 12%, continue to be far exceeded.

On the other hand, due to the increase in total sales, in absolute terms the number of sales by foreigners has increased, exceeding 21,700 transactions, compared to just over 21,500 in the previous quarter. The British are once again at the top of the results, with 8.4% of sales; followed by the Germans (7%) and the French (5.2%).

As for foreign demand by autonomous communities, its percentage weight has increased in 13, with the highest volumes recorded in the Balearic Islands (33.4%), the Valencian Community (28.8%), Murcia (23.6%), Catalonia (16.1%) and Andalusia (13.7%).