The Spanish real estate market is experiencing a surge in the prices of old housing, with an annual increase of almost 15% in 2024. Driven by an imbalance between supply and demand and attractive financing conditions, this trend is accompanied by strong regional disparities.
The Spanish real estate market has recorded a spectacular increase in the prices of old housing, reaching 14.78% at the end of 2024. The average price per square meter now stands at 2,479 euros, according to the portal’s annual report specialized pisos.com. This rebound takes place in a context of continued progression, with a monthly increase of 2.27%, quarterly of 2.79% and half-yearly of 7.56%.
A market under tension
Ferran Font, director of studies at pisos.com, attributes this increase to a persistent imbalance between dynamic demand and insufficient supply.
“Attractive financing conditions, combined with a tight market, have maintained pressure on prices,” he explains.
Despite prices well above inflation, sales continue to increase, demonstrating a still active market. For Font, it is imperative to reform the legal and fiscal framework in order to stimulate supply and limit the impact of rate cuts from the European Central Bank (ECB) on soaring prices.
Strong regional disparity
The most marked increases were observed in Madrid (+21.10%), the region of Murcia (+20.58%) and the Balearic Islands (+19.08%). The latter remain the most expensive province, with an average price of 4,931 euros per square meter, compared to only 750 euros in Ciudad Real, the least expensive province. Cantabria is an exception, recording a slight annual decrease of 0.50%.
In some areas, such as Cuenca, prices increased by 3.03% in one month, reflecting the extent of local variations. These figures highlight significant disparities between regions, exacerbated by unevenly distributed demand.
A market to rebalance
As the ECB continues its policy of reducing interest rates, observers are calling for measures to curb the upward spiral. Structural reform aimed at improving access to housing while stabilizing prices could become a priority to avoid lasting overheating of the market. In this context, Spanish real estate remains attractive, but current tensions raise questions about its medium-term sustainability.
Sami Nemli with agencies / Les Inspirations ECO
