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We are now halfway through 2024 and that means yet another Analysis Real Estate Market Spain 2024 Q2. In Q2, we see demand once again remaining unabated in Spain’s tourist areas, compared to stabilisation in the rest of the country.
General situation real estate market Spain in 2024 Q2
In the second quarter of 2024, the average value of both new and existing homes in Spain increased by 3.1% year-on-year and by 0.5% compared to the previous quarter. This is a slight increase that fits within a stable market. The increase was slightly better than expected, as well as the economic growth. According to notaries, the number of house sales up to April actually increased by 6.4% compared to the same period last year.
However, these are averages across Spain; in tourist areas the increases are a lot higher. Demand remains, but supply is limited. The number of building permits issued also remains at a low level, meaning that housing supply will not increase rapidly in the coming years. This creates continued price pressure in areas with high demand.
The chart below shows the number of sales, mortgages, building permits and the average value per square metre, plus the annual variation.
Property prices in Spain by autonomous region
In most autonomous regions of Spain, prices remain almost the same as the previous quarter, but movement can be seen in the main coastal areas. The Balearic Islands, Canary Islands and Comunidad Valenciana are the standout regions in this regard.
Most Spanish autonomous regions are seeing year-on-year increases of between 2% and 5%. The largest annual increases are seen in the Balearic Islands (8.3%), Canary Islands (6.7%) and Comunidad Valenciana (6.7%). By comparison, the well-known regions of Madrid (+2.2%) and Catalonia (+2.9%) show more moderate increases.
Property prices in Spain by province
The general trend of house price increases, combined with the dynamics in some coastal areas, can also be seen at the provincial level. The provinces with the largest annual price increases are on the islands and along the Mediterranean coast.
In most provinces, house prices are increasing annually by between 1.5% and 6.0%. The biggest increases last year were in Santa Cruz de Tenerife (10.7%), Málaga (9.5%), Alicante (9.3%) and the Balearic Islands (8.3%), among others.
Within some autonomous regions, provinces show different price trends among themselves, such as Andalusia, the Canary Islands and the Comunidad Valenciana. In Andalusia, Málaga stands out with a much higher increase than the other provinces. In the Canary Islands, prices rise more sharply in Santa Cruz de Tenerife than in Las Palmas. In the Comunidad Valenciana, the provinces of Alicante and Valencia stand out.
Real Estate Prices in the Major Cities of Spain
Almost all major cities have positive year-on-year changes compared to last year, mostly between 2.0% and 5.0%. Exceptions can be seen in Madrid and the coastal cities, where growth is a lot more dynamic.
There are cities where house prices rose sharply compared to the same period last year. Málaga saw an increase of more than 10%, and Santa Cruz de Tenerife saw an increase of more than 9%. In addition, Alicante and Valencia recorded year-on-year increases of more than 8%. Among the high employment areas, Madrid saw a 5.0% price increase and Barcelona a 3.8% increase, showing a slight upward trend.
The most expensive cities remain in place with little change. These are, among others, Madrid (€3,833/m²) and Barcelona (€3,722/m²), followed by Palma de Mallorca (€2,837/m²), Cadiz (€2,438/m²) and Málaga (€2,391/m²). Of course, this is still absolutely nothing compared to the current situation in a city like London (€9,143/m²) or New York (Manhattan, €16,146/m²)! The most expensive neighborhood in Madrid, Salamanca, exceeds the 6,000 €/m² average for the first time.
Conclusion real estate market Spain 2024 Q1
The Spanish real estate market saw a slight increase in property prices in the second quarter of 2024. However, the tourist areas on the coast and islands saw a stronger increase, especially on the coast of Valencia, Alicante, Malaga, the Balearic Islands and the Canary Islands. Demand for properties here remains high, offering opportunities for those considering buying in these areas and security to those who have already bought here.
With relatively few building permits being issued, supply will not grow fast in the coming years either, which in turn affects prices. So investing in Spain is still a very interesting option for investing money, but of course, as always, choosing the right location plays an important role!
Do you have any questions as a result of this blog, or would you like to know something else about real estate in Spain? Contact us, our team is here for you!
Source: TINSA
