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Price of Housing Up 9.7% in July

The average cost of housing reached €2,150 p/m²

Average cost of housing now €2,150 p/m²

The price of second-hand housing in Spain increased by 0.2% in July, when compared to the previous month. When compared to the same month in 2022, the increase is 9.7%. This brings the average cost per square metre to €2,150 p/m². Notably, this increase is the seventh consecutive increase of more than 9% so far in 2023.

The cost of housing continues in very bulky variations of almost double digits. The excessive price increases continue to be the trend after more than a half a year with such significant increases. The impact of the rise in interest rates has failed to cool demand enough to balance the market and, in fact, the available housing stock continues to be low, causing prices to increase. The most stressed provincial capitals continue to present very significant increases of up to 20%, this situation is unprecedented, it represents the highest price increase in such a short period of time in recent history“, explained María Matos, Director of Studies at Fotocasa.

Autonomous Communities

Look at the price of homes for sale across the autonomous communities, we see that 17 communities saw an increase in the year-on-year price in July. In six communities, the increase exceeds 10%, specifically, in the Balearic Islands (20.3%), the Canary Islands (20.1%), Navarra (18.0%), the Valencian Community (14.1%), La Rioja (11.4%) and Region of Murcia (11.0%). They are followed by the communities of Andalusia (9.3%), Cantabria (6.7%), Extremadura (6.5%), Castilla-La Mancha (6.0%), Galicia (5.5%), Madrid (5.3%), Catalonia (5.2%), Aragon (4.5%), the Basque Country (3.9%), Asturias (3.6%) and Castilla y León (3.2%).

Ordering the communities by average price, we find the most expensive second-hand homes for sale in Spain are in the Balearic Islands and Madrid, with prices of 3,721 euros/m² and 3,494 euros/m², respectively. They are followed by the Basque Country (3,011 euros/m²), Catalonia (2,754 euros/m²), the Canary Islands (2,220 euros/m²), Navarra (2,020 euros/m²), Andalusia (1,912 euros/m²), Cantabria (1,873 euros/m²), the Valencian Community (1,710 euros/m²), Aragon (1,703 euros/m²), Galicia (1,695 euros/m²), La Rioja (1,629 euros/m²), Asturias (1,628 euros/m²), Castilla y León (1,459 euros/m²), Region of Murcia (1,278 euros/m²), Extremadura (1,205 euros/m²) and Castilla-La Mancha (1,185 euros/m²).

Prices by Province

In 98% of the 50 provinces saw the price of housing increase in the month of July. In 16 provinces the increase exceeded 10%, specifically in Santa Cruz de Tenerife (25.3%), the Balearic Islands (20.3%), Alicante (18.9%), Navarra (18.0%), Malaga (16.3%), Cuenca (14.1%), Teruel (13.9%), Las Palmas (13.8%), Soria (12.1%), Guadalajara (11.6%), Cádiz (11.5%), La Rioja (11.4%), Lleida (11.3%), Murcia (11.0%), Tarragona (10.2%) and Girona (10.0%).

Regarding price ranking by province, the Balearic Islands is the most expensive province with 3,721 euros/m², followed by Madrid (3,494 euros/m²) and Gipuzkoa (3,386 euros/m²), among others. On the other hand, the only province with the price per square meter below 1,000 euros is Ciudad Real with 966 euros/m².