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Second-Hand House Prices Up 1.7% in 2021

Average property prices up for second year
Average second-hand housing prices up for second year

Average property prices up for second year

The price of second-hand housing in Spain closed 2021 with an annual increase of 1.7%, with the average price in December at €1,907 p/m², according to data from Fotocasa. The annual increase in 2021 (1.7%) is the second consecutive increase following the fall seen in 2019 (-1.3%).

The price of second-hand housing remains very stable with respect to 2020. It follows a healthy and moderate path taking into account the historical number of sales achieved during the year, resisting demand pushing prices up. Throughout the year there have been fluctuations in the average prices, with a maximum peak of 2.9% and a minimum of 0.3%. Therefore, this is a great year-end figure, since the forecast for 2022 is not so contained and the price is expected to continue rising, even doubling the increase achieved in 2021“, explained María Matos, director of Studies at Fotocasa.

By Autonomous Communities

The average price of second-hand housing in Spain has fluctuated throughout 2021 until it reached 1,907 euros p/m² in December and returns us to figures seen in November 2012.

At the end of 2021, La Rioja was the community that saw prices increase the most (5.4%), followed by Andalusia (3.9%), the Balearic Islands (3.4%), Aragon (3.3%), Catalonia (2.6%), Galicia (2.5%), Madrid (2.1%), Cantabria (1.9%), Castilla y León (0.9%), the Canary Islands (0.9%) and Valencia (0.8%). In 2017 and 2018 in the Balearic Islands the increases exceeded two digits (15.1% and 10.4%); in 2019 the annual increase did not exceed 1% (it barely reached 0.3%); and in 2020 and 2021 the maximum increases didn’t reach 5%.

At the other extreme, six autonomous communities close the year with negative annual rates. However, they are slight drops compared to those recorded years ago. In fact, we have left behind the double-digit falls that reigned at the end of 2012 and 2013. In this sense, the falls range from -0.3% in the Basque Country to -4.9% in Navarra.

Madrid, which exceeded 3,000 euros p/m² since 2010, is ranked first in the ranking of the most expensive with 3,123 euros p/m². It is followed by the Balearic Islands with an average price in December 2021 of 2,890 euros p/m², the Basque Country with an average price of 2,882 euros p/m² and Catalonia with an average price of 2,544 euros p/m², as the four communities that lead the ranking with the highest prices since 2014.

Although the aforementioned prices are higher than the national average of 1,907 euros p/m², not all of them exceed said average to the same extent. Madrid exceeds the national average by 64%, the Balearic Islands by 52%, the Basque Country by 51% and Catalonia by 33%.

At the end of 2021 (and similar to the previous six years), four of the 17 autonomous communities exceeded the average price of second-hand housing of 2,000 euros p/m², when in 2005, there were 14; in 2010 there were ten and in 2015 there were only three communities that exceeded this figure.

By Province

At the end of 2021, 34 provinces saw an increase in the average cost of second-hand property for sale. 68% of Spanish provinces increased their prices compared to the previous year. Malaga saw the biggest increase, specifically by 9%, followed by Huesca (8.5%), Girona (6.6%), Lugo (6.1%), Pontevedra (5.9%), La Rioja (5.4%), Santa Cruz de Tenerife (5.2%), Tarragona (4.6%), Valladolid (3.5%) and the Balearic Islands (3.4%). On the other hand, the most pronounced annual decrease in 2021 is that of the province of Jaén with -5.7%.

The five Spanish provinces with the highest average house price in 2021 are the same as the previous five years, although the order has changed. Madrid once again occupies the first place in the ranking of provincial prices and stands at 3,123 euros p/m². Gipuzkoa, with 3,103, is placed in the second position of the most expensive provinces to buy a home in 2021. It is followed by Barcelona, in third place for the second consecutive year with 2,955 euros p/m².