Average price growth and decade dynamics
In August, the average price of resale housing in Spain increased by 17.7% year on year and reached €2,738/m². This is according to the latest data published by the portal Fotocasa, which also highlights that at this level, an “average” 80 m² flat costs €219,020 compared with €131,707 in August 2015. This means that over the last decade prices rose by 66.3% (up €87,313).
Demand, supply and growth drivers
According to Fotocasa, home prices continue to rise and show the largest annual increase on record, approaching 20%. Never before has there been such a sharp one-year jump, pushing prices to record highs in many cities.
This significant increase over a short period reflects a deep imbalance between demand and supply. Demand, which remains steady and growing, is driven by social, demographic and macroeconomic factors – including increasingly attractive mortgage terms. When buying is more advantageous than renting, listed homes face strong pressure from buyers. This intense upward trend has been consolidating for seven consecutive months and is likely to continue in the short term.
Regional dynamics
In August, all 17 regions posted annual price growth, with the largest increases in:
- Valencian Community (24.1%)
- Andalusia (23.1%)
- Asturias (20.7%)
- Murcia (20.4%)
The smallest increases were in:
- La Rioja (3.7%)
- Extremadura (3.3%)
- Castilla–La Mancha (3%)
- Aragon (2.9%)
- Navarre (0.9%)
Record prices by region
Ranking by the highest price per square metre puts the Balearic Islands first – €5,168/m². They are followed by Madrid (€4,943/m²), the Basque Country (€3,540/m²), the Canary Islands (€3,139/m²), Catalonia (€3,110/m²), Andalusia (€2,667/m²) and the Valencian Community (€2,447/m²). The cheapest regions are Extremadura (€1,269/m²) and Castilla–La Mancha (€1,263/m²).
Provinces: where prices rose and fell
Prices increased year on year in 47 out of 50 provinces (94%), notably in:
- Valencia (26.1%)
- Santa Cruz de Tenerife (25%)
- Castellón (21.5%)
- Asturias (20.7%)
- Murcia (20.4%)
- Alicante (20%)
Declines were recorded in:
- Teruel (−3.1%)
- Jaén (−0.2%)
- Ciudad Real (−0.01%)
Provincial capitals: the most expensive
The Balearic Islands are the only region where the price exceeded €5,000/m². Next in the ranking are Madrid (€4,943/m²), Málaga (€4,354/m²) and Gipuzkoa (€4,110/m²). The cheapest capital is Ciudad Real – €963/m².
Among provincial capitals, the sharpest annual increases were in Santa Cruz de Tenerife (34.5%) and Castellón (21.7%). The only capital with an annual decline was Huesca (−0.5%). The most expensive capital is San Sebastián (€7,072/m²), followed by Madrid (€6,123/m²), Barcelona (€5,160/m²), Palma (€4,988/m²) and Málaga (€4,160/m²).
