Housing prices in Spain rise by 2.9 per cent in the first quarter of 2023

It appears that soaring mortgage interest rates have done little to dampen the demand for property in Spain, and the price of previously owned homes has already increased by a considerable 2.9% in the first quarter of the year, according to the latest data. The figure is even more impressive when the annual variation is taken into account, representing a 7.3% price hike in the last 12 months.

Every region of Spain reported an increase in the cost of used housing, with the average square foot now setting buyers back 1,943 Euros. A large proportion of buyers in Spain are second property owners and as demand continues to exceed supply in the most popular areas, the prices reflect this resurgence in the market. Spain real estate sector insiders say they are not anticipating any drastic drop in price in the coming month; and indeed in popular hotspots like Huelva, Granada and Alicante they might even even continue to increase.

Sellers in the Region of Murcia ramped up theirs expectations the most in the first quarter, adding 4.6% more to the price tag than last year. Its followed by Andalucia, with a 4.2% increase and the Valencia Community, where homes are now 3.8% more expensive.

On the other hand, the market has hardly shifted in the likes of Asturias, Castilla-La Mancha and Euskadi, where second-hand houses have only increased by between 0.6% and 0.8%.

A firm favourite with British travellers, the Balearic Islands, which this week implemented a smoking ban on 28 of its beaches remains the most expensive place in Spain to buy property. Home owners now charge an average of 3,746 Euros/m2, the highest figure ever seen by the property experts.

Spain’s capital Madrid comes in as a close second, at 3,111 Euros/m2, another all-time high. And while the Region of Murcia has hiked up its prices this year quite substantially, it’s still the second-cheapest place in Spain to purchase, at 1,130 Euros per square metre.

Source: Tinsa, April 2023