According to recent data released on Thursday by the National Statistics Institute (INE), housing prices in the Canary Islands surged by 4.5% in the second quarter of this year. This uptick exceeds the national average increase of 3.6% and is consistent with the rise observed in the previous quarter.
Contrary to other real estate indicators, which have declined due to elevated interest rates, housing prices have remained resilient. They registered a modest quarterly rise of 0.1% in the second quarter.
During the period between April and June, the most substantial increase was noted in the cost of new homes, which climbed by 7.7% year-on-year. This is the steepest such increase since Q2 of 2022. On the other hand, the rate of growth for pre-owned homes was just 2.9%, marking its lowest point in two years.
This latest year-on-year escalation means that housing prices have been on an upward trajectory for 37 consecutive quarters. This trend has persisted despite the rising interest rates, aimed at controlling inflation, and the subsequent increase in financing costs that have put a brake on both property sales and mortgage approvals.
Housing Prices See a 2.1% Quarter-on-Quarter Increase
In a quarter-over-quarter comparison, housing prices rose by 2.1%, marking the largest such increase since the start of 2022. Among different types of housing, pre-owned homes saw the most significant growth, at 2.2%, when compared to the first quarter of the year. Meanwhile, prices for new homes increased by 1.7%.
This latest surge follows a 3.5% year-on-year increase in housing prices during Q1. In 2022, the annual rise in housing prices reached its highest point since 2007, despite a 0.8% drop in the last quarter of the year, marking nine straight years of growth.
In terms of regional performance, every autonomous community reported positive annual growth rates in Q2. Ceuta and Melilla led the pack with 6.2% and 6.1% increases, respectively. Rates were also above average in Navarre (5.6%), Cantabria (4.7%), Andalusia and the Canary Islands (4.5% each), and the Community of Madrid (4.1%). Meanwhile, the Valencian Community saw a 3.5% rise, and both the Balearic Islands and Catalonia reported a 3.2% growth.
The regions with the smallest annual growth were Murcia (1.4%), Extremadura (1.8%), and Castilla-La Mancha (2%). Quarter-over-quarter, the leading communities in terms of growth were Extremadura (3%), Castile-La Mancha (2.9%), and Andalusia (2.7%).
