The latest report from Idealista on housing prices indicates a noticeable rise in the cost of pre-owned homes across the Canary Islands, with a significant 4.4% increase in the first quarter of this year alone. When compared to the same period last year, prices have jumped by an impressive 17.2%, bringing the average cost per square metre to 2,539 euros.
In a broader context, the overall Spanish property market has seen a relatively modest growth, with a 1.8% rise in the first quarter and a 7% increase on an annual basis, setting the average price at 2,079 euros per square metre.
Francisco Iñareta, speaking for Idealista, points to the growing number of property sales reported by the National Statistics Institute (INE) and notaries as the driving force behind the surge in housing prices. He highlights that a growing demand, spurred on by anticipated price drops, is applying pressure on the supply side.
Analysing the situation in capital cities, the real estate index shows that ten cities experienced declines in housing prices in the first quarter. Santa Cruz de Tenerife led with the most significant drop of 4.2%, followed by declines in Pamplona (2%), Pontevedra (1.6%), among others.
In March, eight capital cities hit record-high prices, with San Sebastian topping the list at 5,465 euros per square metre. Madrid, Barcelona, Palma, and Bilbao also saw high prices.
Focusing on major markets, Madrid saw a remarkable 5.3% rise in housing prices in the last quarter, with Valencia (5%), Alicante (4.3%), and others also showing significant increases. Teruel and Santander recorded the highest growth, with a 5.5% increase in house prices.
Conversely, Zamora was identified as the most economical capital city for property, with prices at 1,133 euros per square metre.
THE CANARY ISLANDS AND MADRID, THE AUTONOMOUS COMMUNITIES WITH THE HIGHEST INCREASES
Looking at autonomous communities, there was an overall positive trend in price changes, with the exception of Navarre experiencing a slight decrease of 0.5%. The Canary Islands stood out with the highest increase at 4.4%, followed by Madrid (3.8%) and the Balearic Islands (3.1%).
The Balearic Islands continue to be the most expensive region, with property prices at 4,211 euros per square metre, closely followed by Madrid. On the other hand, Castilla-La Mancha, Extremadura, and Castilla y León are the most affordable regions for prospective property buyers.
