According to the latest idealista price index, this increase brings the average square metre price to €2,007. Impressively, over the last year, prices have surged by 7.5%.
Francisco Iñareta, spokesperson for idealista, sheds light on this phenomenon. “It’s not just about reduced sales or increased financing costs; one of the primary drivers shaping the real estate landscape right now is the scarcity of homes available for sale.”
“This issue is widespread across the country and is exerting upward pressure on prices,” he explains.
Moreover, a significant portion of the demand is from highly qualified individuals with substantial resources, reducing their reliance on financing. Recent official data reveals that more than half of all property transactions occur without any form of financing however if you buy cash it’s worth noting you are unlikely to be able to capital raise on the property in the future to take money back out of it if needed.
Additionally, idealista’s data suggests that the majority of those seeking to buy a home already own one, simplifying the process and cutting down on financial expenses. Coupled with strong demand from foreign buyers, particularly in coastal and island regions, the housing market is experiencing consistent growth, with certain dynamic markets like Madrid, Palma, San Sebastián, and Málaga reaching historic highs, though a stabilization trend is emerging.
While most Spanish cities are witnessing growth, a dozen capitals have experienced slight declines in house values during the last three months. Leading the downturn is A Coruña (-1.5%), followed by Vitoria (-1.2%), Pamplona (-1.2%), Salamanca (-0.9%), Cuenca (-0.8%), and Murcia (-0.8%).
On the flip side, large markets have seen sellers’ expectations soar. Malaga tops the charts with a remarkable 4.3% increase, trailed by Palma (3.2%) and Alicante (2.9%). Meanwhile, Madrid, Barcelona, and Bilbao have experienced a more modest 0.6 per cent growth, while Seville has remained steady at 0.2%.
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