Housing Price Surge Across Spain: A Regional Overview
The housing crisis has significantly impacted Spain throughout 2024, marked by widespread protests in cities nationwide. During this period, the prices of both new and existing homes have risen in all autonomous communities, albeit at varying rates. Leading this surge is the Balearic Islands, where housing prices have increased by 10.8%. In contrast, Navarra reported a modest rise of just 0.4%, as indicated by the latest local market statistics from the appraisal company Tinsa, released on Monday and comparing the fourth quarter of 2024 to the same period in 2023.
Aside from the Balearic Islands, nine other regions experienced housing price increases above the national average of 4.4%. Cantabria followed with an 8.5% rise, while other notable increases were seen in the Canary Islands (7.1%), Madrid (7.0%), La Rioja (6.7%), the Valencian Community (6.5%), Asturias (6.4%), Andalusia (5.5%), Castilla y León (5.1%), and Murcia (4.6%).
Regions falling below the average included Galicia, where prices increased by 3.3%, followed by Catalonia at 3.1%, and the Basque Country at 2.6%. Aragón and Castilla-La Mancha exhibited similar growth rates at 2.4% and 2.3%, respectively. Extremadura's price increase was a mere 1%, making it the second lowest after Navarra. Notably, both autonomous cities recorded decreases, with Melilla seeing a 1.5% drop and Ceuta experiencing a decline of 2.5%.
Tinsa's report also provides insights into the annual price changes across Spanish provinces and their capitals. Soria emerged as the province with the highest price increase in 2024, with a notable rise of 15.3%. This was followed by provinces heavily influenced by tourism or foreign demand, such as Málaga (13%), Santa Cruz de Tenerife (11.5%), and the Balearic Islands (10.8%). In stark contrast, Córdoba, Albacete, and Jaén experienced declines of 3.2%, 3.1%, and 1.7%, respectively.
In the context of provincial capitals, Soria again led the way with a remarkable annual increase of 17.3%. Other cities frequently associated with real estate pressure included Málaga (12.4%), Valencia (11.8%), and Alicante (10.8%). Conversely, Lugo (-2.9%), Salamanca (-1%), and Ourense (-0.1%) were among the few that saw price reductions, along with the two autonomous cities.
The Balearic Islands not only recorded the most significant increase since the end of 2023 but also stands out as the only community where housing prices have surpassed the previous peak observed during the early 2000s real estate bubble. Currently, purchasing a home in this region is 16.9% more expensive than the previous maximum, excluding inflation effects. A similar situation is present in Santa Cruz de Tenerife (2.5%) and in two provincial capitals: Palma de Mallorca (12.1%) and Málaga (4.6%). Madrid is nearing this threshold, with prices just 0.2% below the previous highs set during the property boom.
When analyzing price per square meter, only the Balearic Islands and Madrid exceed EUR3,000, priced at EUR3,187 and EUR3,172, respectively. The Basque Country (EUR2,400) and Catalonia (EUR2,308) follow closely, being the only other regions with prices above EUR2,000. In stark contrast, Extremadura has the lowest price at EUR932 per square meter, followed by Castilla-La Mancha (EUR1,407) and Murcia (EUR1,166).
Examining individual provinces, after the Balearic Islands and Madrid, Barcelona (EUR2,620), Gipuzkoa (EUR2,564), and Bizkaia (EUR2,453) are noted for their high prices. This starkly contrasts with provinces like Ciudad Real, Cuenca, and Jaén, where prices are significantly lower at EUR784, EUR844, and EUR868, respectively.
This disparity is further reflected when considering the most and least expensive provincial capitals. San Sebastián leads with EUR4,412 per square meter, followed by Madrid (EUR4,030) and Barcelona (EUR3,937). In comparison, more affordable options can be found in cities like Zamora (EUR1,119), Ciudad Real (EUR1,130), and Lugo (EUR1,136), where prices just exceed EUR1,000 per square meter.
