The average price of second-hand housing in Spain in May 2021 was 1,834 euros per square metre. This figure represented a rise of 0.88% compared to April, when the price per square metre was 1,818 euros. The rebound compared to May 2020 was 1.75%, since the average price a year ago stood at 1,802 euros per square metre.
Ferran Font, director of Studies at piso.com, says “housing in Spain has shown its resistance to the health crisis, given that prices have been corrected very smoothly, while the increases do not exceed reasonable margins“. Font also suggested that this “good tone” has been possible thanks to the professionalism of the sector, an aspect that, according to Font, “has not only been revealed during the very difficult moments that the pandemic has brought us, but much earlier, during the years after the bubble burst“. This “power of regeneration” has enhanced price stability, despite the strong adjustments in sales and mortgages, indicators that, as Font points out, are already returning to normal.
The immunity that comes with vaccination puts Spain back in an interesting position for investors. Furthermore, Font explains that “the demand from buyers and tenants continues to grow, but it is essential to provide individualised responses to specific needs, since there will be profiles that have savings and payment capacity, but we also find others with fewer resources and of a vulnerable nature“.
Prices in Autonomous Communities
The most expensive communities for second-hand housing in Spain in May 2021 were the Balearic Islands (€3,174 p/m²), Madrid (€3,035 p/m²) and the Basque Country (€2,794 p/m²). The cheapest were Extremadura (€813 p/m²), Castilla-La Mancha (€816 p/m²) and Murcia (€1,040 p/m²). Year-on-year, the most striking increases occurred in Madrid (8.15%), Valencia (4.23%) and Murcia (3.48%), while the most significant falls were recorded by Aragon (-3.54%), Navarra (-2.85%) and the Balearic Islands (-1.39%). The average price of homes for sale in Andalucia in May was €1,379 p/m².
The Balearic Islands were the most expensive province with 3,174 euros per square metre, followed by Guipúzcoa (3,108 € p/m²) and Madrid (3,035 € p/m²). On the opposite side was Ciudad Real, which closed the classification with 637 euros per square metre. Other economic provinces were Jaén (€710 p/m²) and Cuenca (€723 p/m²). The largest increases from one year to the next were located in Santa Cruz de Tenerife (9.02%), Madrid (8.15%) and Lugo (7.73%). The steepest drops were recorded by Burgos (-4.63%), Jaén (-4.38%) and Palencia (-4.03%).
The most expensive capital was Donostia-San Sebastián, with 5,356 euros per square metre. Behind were Barcelona (€4,256 p/m²) and Madrid (€3,968 p/m²). Ávila was the most affordable, with a price of 1,097 euros per square metre. Other cheap capitals were Jaén (€1,099 p/m²) and Ciudad Real (€1,119 p/m²). The most intense increases compared to May 2020 occurred in Huesca (11.55%), Las Palmas de Gran Canaria (8.63%) and Huelva (6.63%). Those that fell the most were Jaén (-6.26%), Teruel (-5.09%) and Palencia (-4.65%).