Resale property prices climb to new record in second quarter of the year

SPANISH HOUSE PRICES have reached record levels nationwide, recording a 7.5% annual increase in the price of properties throughout the country in the second quarter of 2024.

The latest data released by Spanish real estate experts Idealista illustrates the year-on-year rise in resale prices, with the industry body highlighting an increase of 2.9% in the last quarter alone.

"The main problem facing the property market in Spain at present is none other than the lack of available properties," said Francisco Iñareta, spokesman for Idealista.

"The lack of new construction in the buying and selling market is pressing. Few municipal town halls have dared to develop land in the last few years, and this lack of new homes means that all the weight of demand falls on the resale market, pushing prices higher" he said.

Resale house prices rise in cities across Spain

All Spanish capital cities have seen price increases over the past year, except Pamplona, where prices fell moderately by 1.1%.

Málaga leads the way in price increases, having risen by 19.9% over the past 12 months. The city of Alicante registered an annual increase in property prices of 16.9%, followed by the cities of Valencia (14.7%), Santander (13.7%), Soria (13.6%), and both Madrid and Santa Cruz de Tenerife (12.4%).

Among the major city real estate markets, resale prices have also risen in Palma (9.4%), Seville (7.5%), Barcelona (7.2%), San Sebastián (5.2%) and Bilbao (4.1%).

The average price for a single square metre of resale housing in the city of Alicante now stands at 2,092 €.

Property prices increase in all autonomous communities

Resale home prices have increased in all the autonomous communities over the last 12 months. The largest increase has been recorded in the Canary Islands, where homeowner expectations have increased by 15.4%.

Properties in the Balearic Islands registered double-digit increases, with the average price of a home costing 10.7% more than at this time last year.

The Valencian Community has seen resale house prices increase by 10.3%, with prices outpacing property value increases in the Community of Madrid (9.5%).

Resale house prices in our neighbouring Region of Murcia registered average price rises of 7.2% over the past year, ahead of Cantabria (6.9%) and La Rioja (5.6%).

Higher house prices in the Alicante Province

Perhaps unsurprisingly, all provinces have seen price increases in the last 12 months. Santa Cruz de Tenerife leads the way with an 18% increase in average resale property prices, followed by Las Palmas (12.1%) and Malaga (11.3%).

In the Alicante Province, the price of resale property for sale has appreciated by 10.5% year-on-year, with the average sale price of one square metre rising to 2,202 €.

The record-setting increase in property values in the Alicante Province is marked by the last recorded quarter, with a notable increase in house prices of 4.2% for the second quarter of 2024 alone.

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