The price of housing in the Canary Islands has increased by 10.9% in the first quarter of the year compared to the same period last year, according to the latest price report published by pisos.com.
In Spain as a whole, the price of used housing has registered a year-on-year growth of 6.55% in the first quarter of the year in Spain, reaching an average of 2,016 euros per square metre and with a positive quarterly variation of 1.62%.
The director of research at the real estate portal, Ferran Font, pointed out that the inflation suffered by families could slow down demand and moderate prices in the coming months, while he considers that the increase in the cost of financing “will still take time to reduce the momentum of demand”.
“The rate rises applied by the European Central Bank mean that financing is no longer as cheap as before, but institutions are taking care to reconfigure the mortgage offer because they have to continue to attract customers,” Font pointed out.
On the other hand, the executive assured that investment in housing will continue to be attractive thanks to the high profitability of rents. “The defensive value of this asset becomes relevant at a time when leasing is expanding and is under pressure from those who cannot buy and agree to be long-term tenants,” he explained.
PRICES INCREASE BY ALMOST 20% IN THE BALEARIC ISLANDS
The price of second-hand housing has increased by 19.6% in the Balearic Islands in the first quarter of 2023 compared to the same period of the previous year, to almost 4,000 euros per square metre. Behind them, the Valencian Community (+11%) and the Canary Islands (+10.9%) have registered the most significant increases.
In quarterly variation, the Balearic Islands (+5.4%) and the Valencian Community (+4.4%) were also the regions with the highest growth in prices, while Cantabria (-1.1%), Extremadura (-0.5%) and La Rioja (-0.3%) showed slight falls. Extremadura was the cheapest region in which to buy a property, with an average price of 805 euros per square metre.
By provinces, the largest quarterly increases have occurred in the Balearic Islands (+5.4%), León (+4.8%) and Valencia (+4.6%), while prices have moderated in Tarragona (-3.1%), Orense (-2.6%) and Zamora (-1.3%).
ALICANTE AND PALMA SEE PRICES RISE BY MORE THAN 17%
Alicante and Palma de Mallorca were the provincial capitals with the highest price increases in the first quarter of 2023, with rises of 17.7% and 17.3% year-on-year, respectively.
On the other hand, Huesca recorded a 16.6% drop in prices compared to the same period in 2022, while Gerona (-4.5%) and Zamora (-2.9%) showed more moderate falls.
The most expensive capital city in the first quarter of the year was San Sebastian, with an average price of 5,710 euros per square metre, while Jaén was the cheapest, at just over 1,000 euros per square metre.