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Second-Hand House Prices Up 30% Since 2015

Prices in Palma de Mallorca are up 58%
Price of second-hand homes in Palma de Mallorca are up 58% since 2015

Prices in Palma de Mallorca are up 58%

The cumulative price of second-hand homes in Spain has increased by 15% over the last five years (since June 2015), according to data from property portal Fotocasa.

The price of second-hand housing at the end of 2019 suffered the first decrease in year-on-year prices following almost four years of uninterrupted increases. Since then, prices have been recording small declines showing the second-hand property market has stabilised. However, these small price drops are not significant because the current average prices still remain up to 40% below those reached before the financial crisis.“, explained Anaïs López, Communication Director at Fotocasa.

Looking at the percentage increases accumulated since 2015, the average price per square meter of second-hand homes for sale has increased by 15% across Spain (from 1,635 euros/m² in June 2015, to 1,874 euros/m² in June 2020).

Thus, in 2015, buyers had to pay an average of 130,802 euros (June 2015, €1,635 p/m²) for the purchase of an 80m² home, compared to the 149,894 euros (June 2020, €1,874 p/m²) which is the average in Spain in 2020.

The Balearic Islands, Madrid and Canary Islands Most Affected

Of the autonomous communities that have been most affected by the increase in the price of second-hand homes in the last five years, three of them have seen increases exceeding 30% since 2015. The price of housing for sale in the Balearic Islands has gone from €1,864 p/m² in June 2015 to €2,764 p/m² in June 2020 (48% increase); in Madrid from €2,222 p/m² to €3,050 p/m² (37.3%) and the Canary Islands from €1,299 p/m² to €1,774 p/m² (36.6%), in the last five years.

Putting the biggest increases in order of cumulative increase in Spain we see the Balearic Islands (48%), Madrid (37.3%), Canary Islands (36.6%), Catalonia (19%), Andalusia (16%), Valencian Community (11%), Navarra (4%), La Rioja (3%), Castilla-La Mancha (3%), Aragon (2%) and the Basque Country (0.4%).

On the other hand, the order of the communities in which the price of second-hand housing prices have decreased since 2015 is: Galicia (-2.6%), Castilla y León (-2.4%), Asturias (-2%) , Extremadura (-1.7%), Cantabria (-1.2%) and Región de Murcia (-0.8%).

By City

Palma de Mallorca, Malaga capital and Madrid capital are the only cities whose increases have exceeded 40% since 2015.

The ten cities with the highest cumulative increase in the price of homes for sale in Spain since 2015 are: Palma de Mallorca (58%), Málaga capital (48%), Madrid capital (43%), Barcelona capital (35%), Las Palmas of Gran Canaria (35%), Donostia – San Sebastián (34%), Girona capital (31%), Valencia capital (30%), Cádiz capital (24%) and Seville capital (20%).

Eight cities that have not been affected by the increase in housing for sale since 2015 are: Ávila capital (-8%), Zamora capital (-7%), Teruel capital (-5%), Soria capital (-4%), Ourense capital (-3%), Jaén capital (-2%), Cáceres capital (-1%) and Oviedo (-0.2%).