Spain saw highest house price increase in three years in August

by Lorraine Williamson
increase in house price

The price of existing homes rose in August by 1.4% and even by 5.2% year-on-year. This is the highest increase in house prices in the past three years. As a result, the price for these homes reached €1,988 per square metre, according to data from the Fotocasa Real Estate Index. These figures do not refer to newly built homes. 

The increase of 1.4% can be explained by the increase in transactions in view of the expected rise in the Euribor rate. Prices of existing homes rose in all regions, with the exception of Cantabria and Castilla y León. 

House prices have been rising steadily for seven months now, but so far these increases have been moderate, at less than 4% at the national level. In August, however, the moderation is broken and there is a significant increase, as the rise exceeds 5% year-on-year,’ said María Matos, director and spokesperson for property platform Fotocasa. 

‘This dynamic increase is probably due to the fact that the demand to buy a property has risen very strongly, as people want to buy a property before mortgages become even more expensive due to the rise in Euribor. This trend will probably begin to subside as the market finds a balance and uncertainty begins to subside. Another important aspect to be highlighted is the lack of housing stock in the market,” she added. 

Price rises in 15 communities 

An analysis of the prices of homes for sale compared to a year ago shows that in August, prices increased year-on-year in 15 regions. 

Cogesa Expats

In two communities, prices rose by more than 10%. These are notably in the Balearic Islands by 10.9% and in Navarre by 10.1%. This is followed by;

  • Madrid with 7.4%
  • Valencia with 6.8%
  • The Canary Islands 5.4%
  • Andalucia 5.3%
  • Catalonia 3.8%
  • Murcia 3.8%
  • Castilla-La Mancha 1.5%
  • Aragon 1.4%
  • La Rioja 1.2%

Finally, compared to the same month last year, the price increase was 1.1% in Galicia, 1% in the Basque Country, 0.8% in Extremadura and 0.5% in Asturias. Whereas, in the Castilla y León region, prices fell by -0.2% in August and by -0.1% in Cantabria. 

Madrid and the Balearic Islands, the highest prices 

Prices per square metre are as follows;

  • Madrid €3,359
  • Balearic Islands €3,184
  • The Basque Country €2,901
  • Catalonia (€2,636)
  • The Canary Islands (€1,871)
  • Navarra (€1,788)
  • Andalucia (€1,776)
  • Cantabria (€1,751)
  • Aragon (€1,629)
  • Galicia (€1,636)
  • Asturias (€1,594)
  • Valencia region (€1,523)
  • La Rioja (€1,486)
  • Castilla y León (€1,441)
  • Región de Murcia (€1,160)
  • Extremadura (€1,159)
  • Castilla-La Mancha (€1,136)

Also read: House prices in Ibiza

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