Regions with rising housing costs in Spain
Residential prices in Spain have continued to climb following last year’s upward trend. Data from the National Statistics Institute show that the average price of purchasing a home rose by 7.4 percent in 2022, marking the strongest annual increase since 2007. In the first quarter of the current year, price indices published by Idealista and Fotocasa indicated that housing costs rose between 2.5 and 2.9 percent compared with the previous quarter.
Fotocasa reported a year-over-year increase of about 7.3 percent, while the second major portal cited a roughly 10 percent rise. María Matos, Fotocasa’s research director and spokesperson, noted that the tightening of monetary policy by the United States, coupled with higher European Central Bank rates, pushed borrowing costs higher. This shift, which pushed the cost of credit to about 3.5 percent, boosted purchase demand and added pressure on prices due to tighter supply.
Francisco Iñarreta, a spokesperson for Idealista, emphasized that neither the hike in interest rates nor the rising financing costs has diminished buyer interest. While prices are forecast to stabilize in the near term, a slight decrease is anticipated toward the end of the year.
The regions with the highest housing prices in Spain
During the year, the Balearic Islands, the Murcia region, and Andalusia posted the most substantial gains, with nationwide increases reaching about 9.9 percent. Other regions showing notable improvements include Asturias, Castilla-La Mancha, and Galicia.
Offers on real estate have continued to appear across the market, reflecting the persistent demand in several coastal and inland areas. Market observers suggest that demand remains robust in major urban centers and popular vacation destinations, even as supply strains persist in several markets (Source: INE; market analysts).
Regions with higher price growth often point to strong tourism, limited land for development, and continued migration to major metropolitan areas, combined with improving local economies. These dynamics have kept prices elevated in sought-after locales, while some markets experience more modest gains as buyers weigh affordability against long-term value (Source: Idealista; Fotocasa).
Cities where apartment prices have fallen
Across the country, some capitals have seen entry costs ease slightly. Among the cities, Huesca recorded the most noticeable uptick in affordability, whereas Toledo, Tarragona, Cuenca, Melilla, Valladolid, Ciudad Real, León, and Pamplona experienced declines in housing prices. This pattern suggests a diversification in city-level price movements, driven by local demand factors and varying supply conditions.
Real estate professionals highlight that changes in local employment, university presence, and infrastructure investments can shift price trajectories. Even in markets with cooling prices, buyers remain active in locations with strong long-term prospects, while investors watch for signs of stabilizing rents and market liquidity (Source: local market reports; agency insights).
Notably, agency windows and showrooms continue to reflect a mix of price consolidation and pockets of resilience, where premium neighborhoods maintain elevated price levels despite broader regional trends (Source: regional market data).
Across the board, buyers are advised to monitor financing costs, local regulatory changes, and seasonal demand cycles, which can all influence the timing and level of price adjustments in different cities.
The most expensive capitals to buy a home in Spain
Among the capital cities, San Sebastián remains the priciest place to purchase a home, followed closely by Barcelona and Madrid. Prospective buyers often weigh the premium tied to these flagship markets against factors like quality of life, accessibility, and long-term property appreciation. Local amenities, cultural significance, and strong rental demand contribute to the sustained price levels seen in these capitals.