In the closing month of the year, the Canary Islands stood out prominently among Spain’s autonomous communities for the substantial rise in second-hand housing prices, registering a notable 12.82% increase in December compared to the same period in the previous year. This growth rate positioned the archipelago just shy of the top increases seen in the Valencian Community, which led with a 13.83% surge, followed closely by Madrid at 13.23%, as detailed in a report from pisos.com.
Nationally, the second-hand housing market experienced an 8.86% year-on-year increase in December 2023, pushing the average price to €2,160 per square metre. This marked not only a 0.51% increment from November’s figures but also a significant 3.41% rise over the quarter and a 5.01% increase over the last six months.
Regionally, the Balearic Islands commanded the highest prices at €4,141 per square metre, starkly contrasting with Extremadura, the most economical at €819 per square metre. Provincially, Santa Cruz de Tenerife, Valencia, and Malaga saw the steepest year-on-year ascents. Conversely, a few provinces like Ourense, Zamora, and Álava experienced declines, indicating a varied national landscape.
Ferran Font, director of research at pisos.com, characterized the year as atypical, pointing out the disconnect between property prices and the trajectories of sales and mortgage rates. He noted the increased cost of financing but emphasized that a consistent demand is anticipated as long as lending standards are met and financial obligations remain within reasonable bounds.
In the provincial capitals, Valencia, Malaga, and Santa Cruz de Tenerife stood out with the highest increments relative to December 2022. On the opposite end, Zamora, Salamanca, and Cordoba faced the most significant price declines. The distinction of the most expensive capital went to Donostia-San Sebastián, while Jaén was identified as the most budget-friendly.
Zooming into Madrid, the Salamanca district emerged as the priciest, with Villaverde being the most affordable. Barcelona’s districts varied significantly in price, with Sarrià-Sant Gervasi at the high end and Nou Barris at the lower end. In Valencia, L’Eixample was the most expensive district, while Pobles de l’Oest was the least. Campanar led the ranks with the most notable year-on-year rise.
When examining municipalities, Alboraya, Godella, and La Seu d’Urgell experienced substantial hikes compared to 2022, while Villajoyosa, Elche, and Aramaio saw the most significant declines. The Balearic Islands boasted the most expensive municipalities, with Formentera at the helm. Conversely, the most affordable were found in places like Mota del Cuervo, Peñarroya-Pueblonuevo, and Tamarite de Litera.
This comprehensive analysis by pisos.com sheds light on the dynamic and diverse landscape of Spain’s second-hand housing market, with the Canary Islands marking its position as one of the regions with the highest price increases, indicating a robust and active market heading into the new year.
