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House Prices Up in Second Quarter

Average prices reached €1,936 p/m2 in Q2
Average price of homes for sale reached €1,936 p/m2 in Q2

Average prices reached €1,936 p/m² in Q2

The price of second-hand homes for sale in Spain increased by 1.2% in the second quarter of 2022. This is a year-on-year increase of 2.8%, bringing the average price per square metre to 1,936 euros. This increase is also the first quarterly increase since the fall seen in Q2 of 2021.

The trend in house prices is rising in general terms, but at a moderate pace. The demand to buy continues to be very strong and the offer is gradually reducing, these are the engines that drive prices up. However, the vast majority of autonomies are 34% below the maximum price reached during the bubble. So we still oscillate between relatively reasonable prices. Although there is one exception: the Balearic Islands currently have the maximum price of housing registered in its entire historical series, it is the only autonomous community to exceed the levels of the 2007 bubble, and the situation is alarming since it increases the difficulties of access to property. The rise in interest rates in July will very likely curb the demand for housing by making mortgage loans more expensive, and with a more moderate demand, prices may stabilize in the medium term“, explained María Matos, Director of Studios for Fotocasa.

Prices by Autonomous Communities

14 Autonomous Communities saw the price of homes for sale rise and it was the Balearic Islands that once again headed the ranking with a 5.4% increase; the largest quarterly increase detected among all the Spanish communities in the last twelve months. They are followed by Madrid (2.3%), Castilla-La Mancha (2.0%), Region of Murcia (1.9%), the Canary Islands (1.5%), Valencia (1.5%), Extremadura (1.0%), Aragon (0.8%), Cantabria (0.8%), Asturias (0.6%), Catalonia (0.5%), Andalusia (0.5%), Navarra (0.5%) and the Basque Country (0.3%). However, the average prices of homes in Castilla y León (-1.1%), La Rioja (-0.8%) and Galicia (-0.6%), are cheaper in June than three months ago (March 2022).

Regarding the ranking of prices by communities, Madrid is the most expensive, paying about 3,289 euros per square meter. It is followed by the communities of the Balearic Islands (3,070 euros/m²), the Basque Country (2,893 euros/m²), Catalonia (2,590 euros/m²), the Canary Islands (1,800 euros/m²), Cantabria (1,761 euros/m²), Andalusia (1,727 euros/m²), Navarra (1,682 euros/m²), Aragon (1,611 euros/m²), Galicia (1,599 euros/m²), Asturias (1,585 euros/m²), Valencian Community (1,472 euros/m²), La Rioja (1,437 euros /m²), Castilla y León (1,410 euros/m²), Extremadura (1,148 euros/m²), Region of Murcia (1,144 euros/m²) and Castilla-La Mancha (1,120 euros/m²).

Prices by Province

Data from Fotocasa shows that in the second quarter of 2022 the price of homes for sale rose in 34 of the 50 provinces of Spain. The quarterly increases range from 7.2% in Toledo to 0.2% in Ávila. On the other hand, the province with the most pronounced decrease is Zamora, which has seen its value fall by -3.4% in June compared to March 2022. It is followed by Salamanca (-2.6%) and Lugo (-2 %), among others.

The only province that has so far reached its maximum value in 2022 since the so-called real estate bubble is the Balearic Islands, reaching 3,070 euros per square meter in June. Taking into account the ranking of prices by province, Gipuzkoa, Madrid and the Balearic Islands are the only ones that exceed the barrier of 3,000 euros, specifically Madrid pays 3,289 euros, Gipuzkoa 3,174 euros and 3,070 euros per square meter for the Balearic Islands.

Only five provinces saw the price of housing between 2,000 and 3,000 euros/m² and they are Barcelona with 2,974 euros/m², Bizkaia 2,853 euros/m², Malaga with 2,596 euros/m², Araba – Álava with 2,570 euros/m² and Girona with 2,202 euros/m². On the other hand, Ciudad Real with 938 euros/m² is the only province with housing prices below 1,000 euros per square metre.