August 2, 2023, 12:57

Housing prices in Spain recorded a year-on-year increase of over 6% in five Spanish provinces in the second quarter of 2023, while it decreased in eleven others, according to data from the latest report by CBRE's valuation department.

The real estate consultancy highlighted that the data shows how housing prices have evolved at different speeds in Spain from April to June.

Specifically, the five provinces where housing prices have risen by more than 6% during the last quarter compared to the same period last year are: Málaga (+8.6%), Segovia (+7.7%), Baleares (+7.3%), Guadalajara (+6.5%), and Santa Cruz de Tenerife (+6%).

These increases have also exceeded the national average year-on-year growth rate of housing prices in the second quarter of 2023, which was close to 2.3%.

On the other hand, prices declined in Valladolid (-0.1%), Córdoba (-0.1%), León (-0.3%), Almería (-0.4%), Vizcaya (-0.7%), Ciudad Real (-0.8%), Tarragona (-1.6%), Teruel (-1.7%), Burgos (-2.1%), Huesca (-2.8%), and Cuenca (-3.3%).

In the rest of the regions, housing prices grow but more moderately (between 1% and 5%), according to CBRE's valuation department.

Regarding the analysis of why these increases occurred in these five provinces, the consultancy explains that in Baleares, for example, the level of demand remains very high, which clashes with limited supply, leading to an increase in sales prices.

Additionally, the attractiveness of residential assets' profitability continues to position the Balearic Islands as one of the main destinations for investment.

Regarding another province where housing prices rise by over 6%, Santa Cruz de Tenerife, the high construction costs and lack of materials have caused a decrease in supply, which cannot meet the existing high demand.

"In the case of Guadalajara, for example, the price increase is due to significant population growth in the city in recent years, due to its proximity to the capital, combined with the fact that buying a house is 57% cheaper than in Madrid," explains Carlos Blanco, Director of CBRE's Valuation Business.

As for the province at the top, Málaga, the expert explains that due to a strong population increase, "it has become an important hub for business attraction, with great international projection, which is also reflected in the increase in housing prices."

According to CBRE's report, the highest average prices are found in Madrid (€2,978.30 per square meter), Guipúzcoa (€2,937.70), Islas Baleares (€2,802.80), and Barcelona (€2,570.50).

On the other hand, 14 provinces have an average price below €1,000 per square meter, with Zamora (€805.40), Jaén (€798.20), Teruel (€762.90), and Ciudad Real (€722.90) having the lowest prices.