Spain’s second-hand housing market shows steady price growth across regions
In the second-hand segment, the average price per square meter in Spain reached 1,934 euros, reflecting a 2.2% year-on-year rise in May and a 0.7% uptick from April, according to the Fotocasa Real Estate Index. The data points to a market that remains competitive for buyers and sellers alike as values continue to climb.
Since November 2020, prices have risen for nineteen consecutive months, marking a clear upward trend. Fotocasa notes that the imbalance between supply and demand is a primary driver of this rise. Market observers suggest that some regions may be moving toward a new equilibrium as the year progresses, indicating adjustments in buying patterns and pricing strategy.
The supply constraint appears to be a decisive factor. Nationally, home sales transactions reached 565,523 in the previous year, a 34.6% increase from 2020, according to the National Institute of Statistics. Industry forecasts project a similar trajectory, with a target around 580,000 for 2022. Given land constraints and rising construction costs, the limited new-build activity is pushing buyers toward the existing housing stock, a shift Casavo, a digital real estate platform, identifies as a practical response to the slowdown in new construction. The costs associated with building new homes also contribute to the broader price pressure in the market.
Turning to Barcelona, Casavo highlights a notable drop in new housing supply, with 17.8% fewer new homes listed last year, falling from 1,409 to 1,158 units. Conversely, the market saw an uptick in listings for rental properties and a portion of these units moving into sale inventories, reflecting changing ownership dynamics in the city.
As market activity regroups after months of pandemic-related inactivity, demand is beginning to reassert itself. Analysts observe that buyers are refining how they search for properties and structure their transactions. If sales of new homes grew at a robust pace in 2021, the scarcity of new construction is likely to steer demand toward existing homes and elevate renovation activity, particularly in densely populated urban centers.
The price impact is broadly visible. Fotocasa reports monthly and annual increases across 13 autonomous communities in May, with Madrid and the Balearic Islands leading gains above five percent. In the Balearic Islands, the average price per square meter reached an all-time high near 3,000 euros, underlining the region’s appeal and willingness of buyers to pay a premium for location and lifestyle. Madrid sits close behind, with an average around 3,291 euros per square meter. Following them are gains in Andalusia, Cantabria, and Catalonia, while some regions such as Castilla y León, Extremadura, Asturias, and Castilla-La Mancha posted price declines year over year.
On a provincial basis, price elevation is evident in 70% of Spanish provinces since May 2021. Notable increases occur in Malaga, Alicante, Granada, and Girona, while Valencia, Zamora, and Palencia show declines. Roughly 78% of provincial capitals (39 of 50) reported higher prices over the same period, with Alicante experiencing a double-digit rise in some measurements. Major cities such as Zaragoza, Pamplona, Valencia, San Sebastian, Badajoz, and Malaga recorded strong year-on-year gains, while San Sebastian topped the list for the most expensive square meter price in May at approximately 5,937 euros. Barcelona, Madrid, and Bilbao remained among the priciest urban markets, while Lugo, Palencia, and Tarragona showed the most significant declines among capitals. Huelva stood out as the most affordable capital, with around 1,202 euros per square meter in May.