The Spanish real estate market has experienced a significant upward trajectory in housing prices throughout the first half of 2024. With the average cost of second-hand homes rising by 7.3% year-on-year to 2,259 euros per square meter, the market is witnessing its highest growth rate since 2006.
Driving Factors Behind the Price Surge
The price surge is primarily driven by a substantial imbalance between limited housing supply and persistent demand. This is particularly notable in major urban centers and key coastal regions, where real estate is highly sought after.
Regional Disparities Intensify
Regional disparities are becoming more pronounced, with the Balearic Islands, Madrid, and Andalusia experiencing the largest annual increases. These areas are attracting more buyers, exacerbating supply constraints due to slower new developments and regulatory pressures on rentals.
Market Resilience Against Economic Changes
Despite softer mortgage approval rates in response to higher interest rates, robust purchasing activity continues. This is largely fueled by domestic buyers and investors seeking stable returns in a tightening rental market environment.
💬 How might these trends impact your real estate portfolio?
Explore opportunities with us.
