Spain is witnessing a surge in new build house prices, with the average price exceeding €2,000/m² for the first time since 2008. According to the Association of Registrars, the average price per square metre for all housing types increased by 2.9% in Q2 2024, largely due to a rise in used housing prices.
The highest property prices are seen in regions like the Balearic Islands and Madrid, where averages are around €3,500/m². Conversely, Castilla-La Mancha and Extremadura offer the most affordable options, with prices below €1,000/m². The most expensive cities are San Sebastian (€5,554/m²), Barcelona (€4,441/m²), Madrid (€4,207/m²), Palma (€3,471/m²), and Bilbao (€2,989/m²). Conversely, the most affordable average prices are in Zamora (€1,014/m²), Ciudad Real (€1,062/m²), and Jaen (€1,120/m²).
Declining sales and mortgages
Despite rising prices, property sales have dropped by 3.4% compared to the previous quarter. New housing sales fell by 6.6%, while mortgage registrations also saw a notable decrease. Over the past 12 months, a total of 567,784 homes were sold. This reflects a 1% decrease from the 573,494 transactions recorded in the same period the previous year. This slight decline indicates a continued downward trend in home sales, even though the performance in the last quarter showed some improvement.
Foreign investment on the rise
Foreign demand now accounts for 14.8% of all housing transactions in Spain, up from 14.2% in the previous quarter. British buyers lead the charge, followed by Germans, Moroccans, Romanians, and French nationals. The Balearic Islands and Valencia remain top destinations for foreign investors, with nearly a third of all transactions in these regions attributed to international buyers.
Also read: The three Spanish provinces where house prices will rise the most in 2024