House prices in Spain have surged by 8.7 per cent year-on-year in the third quarter, bringing the average price per square metre to €2,182 euros.
Over the last three months alone, prices have risen by 2 per cent, setting a new historical high for the country.
Francisco Iñareta, spokesperson for Idealista, commented that while the rising prices may not yet fully impact affordability at the national level, in major markets, the situation is becoming alarming.
Mortgage Payments
Many new buyers are now forced to allocate more than 30 per cent of their income to mortgage payments.
He attributes this issue to a combination of factors, including criminalising new housing developments, lacking foresight in land planning, and bureaucratic hurdles.
Additionally, labour shortages and the disappearance of construction companies, coupled with population growth, have further strained housing supply in the most dynamic areas.
Driving Prices
The demand for housing continues to outpace the availability of existing homes, driving prices upward.
Iñareta urges political leaders to take swift action to encourage and expedite the construction of new housing developments, particularly in areas under the most pressure.
Capital Cities
All Spanish capital cities have seen price increases over the past year, except for Huesca, where prices remained stable.
Leading the surge is Malaga, with a 17.9 per cent increase, followed closely by Madrid (17.8 per cent), Valencia (17.6 per cent), and Santander (16.7 per cent).
Other notable increases occurred in Alicante (15.9 per cent), Granada (15 per cent), and Soria (13.5 per cent).
Among larger cities, Palma saw a 10.2 per cent increase, Barcelona 9.8 per cent, Seville 7.8 per cent, Bilbao 6.1 per cent, and San Sebastian 4 per cent.
Most Expensive City
San Sebastian remains Spain’s most expensive capital city, with prices reaching 5,570 euros per square metre, followed by Madrid (4,756 euros/m²), Barcelona (4,561 euros/m²), Palma (4,308 euros/m²), and Bilbao (3,384 euros/m²). Zamora, on the other hand, is the least expensive capital, with prices at 1,175 euros/m².
A total of 16 cities, including Malaga, Madrid, Valencia, Alicante, and Barcelona, have reached historical price highs.
Autonomous Communities
House prices have risen in all autonomous communities over the past year.
The Canary Islands experienced the largest increase, with prices rising 16.4 per cent. Other regions seeing double-digit growth include Madrid (14.1 per cent), the Balearic Islands (13.1 per cent), the Valencian Community, and the Region of Murcia (both at 12.7 per cent).
In contrast, the smallest increases were recorded in Extremadura (2.8 per cent) and Castilla-La Mancha (3.4 per cent).
Most Expensive Autonomous Community
The Balearic Islands are currently the most expensive autonomous community, with an average price of 4,561 euros/m², followed by Madrid (3,569 euros/m²) and the Basque Country (2,992 euros/m²).
At the lower end of the spectrum are Castilla-La Mancha (936 euros/m²), Extremadura (973 euros/m²), and Castilla y León (1,195 euros/m²).
Prices Per Province
Most provinces have also seen price increases over the past year, with the exceptions of Ourense (-2.2 per cent), Córdoba (-1.6 per cent), Ciudad Real (-0.9 per cent), and Badajoz (-0.2 per cent). The largest increases were recorded in Santa Cruz de Tenerife (17.5 per cent), Las Palmas (14.7 per cent), and Madrid (14.1 per cent).
Other provinces with significant increases include the Balearic Islands (13.1 per cent), the Region of Murcia (12.7 per cent), Alicante (12.6 per cent), Malaga (11.9 per cent), and Valencia (10.3 per cent). In the province of Barcelona, prices rose by 2.9 per cent.
Most Expensive Province
The most expensive provinces are led by the Balearic Islands (4,561 euros/m²), followed by Guipúzcoa (3,652 euros/m²) and Madrid (3,569 euros/m²).
On the other end, Ciudad Real remains the cheapest province at 745 euros/m², followed by Jaén (838 euros/m²) and Cuenca (845 euros/m²).
