Santa Cruz de Tenerife and Las Palmas de Gran Canaria are among the provinces where the price of pre-owned housing rose the most in May, with an increase of 7.5% and 6.04% respectively over May last year, behind only Alicante (8.7%) and the Balearic Islands (7.1%), according to data from the real estate portal Hogaria.net.
In total, the price of pre-owned housing in Spain rose by 5% in May compared to the same month last year, to 1,852 euros per square metre, which is 0.3% higher than in April.
In the report, the portal highlights that in May, all but 11 of Spain’s provinces recorded price increases compared to April. The list is headed by the Balearic Islands, with an increase of 1%, followed by Navarre with 0.9%, Lleida with 0.8%, Teruel with 0.8% and Alicante with 0.7%. In those where prices fell the most were Zamora (-1%), Cáceres (-0.9%), Segovia (-0.7%), Badajoz (-0.6%) and Lugo (-0.4%).
In terms of prices per square metre in the provinces, the Balearic Islands recorded the highest in May with 3,666 euros, followed by Barcelona (3,237 euros), Guipúzcoa (3,202), Madrid (3,175) and Vizcaya (3,149). On the other side was Ciudad Real, where the price per square metre was 1,138 euros, followed by Palencia (1,170), León (1,182), Badajoz (1,260) and Ourense (1,280). Compared to May 2022, prices fell in Zamora (-2.57%), Jaén (-1.27%), Teruel (-1.10%) and Cuenca (-1.04%).
By provincial capitals, those whose prices rose the most with respect to April were Santa Cruz de Tenerife (1%), Badajoz (0.8%), Palma de Mallorca (0.8%), Valencia (0.7%) and Oviedo (0.5%). The cities where prices fell the most in May were Lugo (-0.2%), León (-0.2%), Ávila (-0.1%), Huelva (-0.1%) and Zaragoza (-0.1%).
The most expensive cities were Madrid, where the price per square metre for pre-owned housing stood at 3,984 euros, followed by Barcelona, with 3,832 euros, Bilbao with 3,373 euros, and Palma de Mallorca, with 3,105 euros. The cheapest provincial capitals in May were Lugo (1,067 euros), Murcia (1,119), Ávila (1,137) and Castellón de la Plana (1,164).
As for the districts of the capital of Madrid, Salamanca, Chamartín, Chamberí and Retiro are the ones that recorded the highest average price per square metre (5,603 euros) and in Barcelona, Eixample, Les Corts, Sarrià-Sant Gervasi and Ciutat Vella stand out, with an average price of 5,556 euros.
RISE OF THE PRICES WILL SLOW DOWN IN THE SECOND HALF OF THE YEAR
Hogaria expects these rises to moderate in the second half of the year, as it warns that investors, who are currently driving demand, will stop doing so due to the entry into force of the new housing law, which will mean that rents will no longer be updated in line with the CPI, thus limiting their profitability.
