Housing prices rise 5.7% to their highest level since the end of the bubble

PUBLISHED ON

Octubre 15, 2024

CATEGORY

Real Estate

It had been more than 15 years (mid-2009) since housing prices had reached their current level. House values rose by 5.7% between April and June, to 1,895.6 euros/m2. The increase was 1.6% when compared to the previous three months. These are data from the Ministry of Housing and Urban Agenda that certify that this is the fourth consecutive quarter above the €1,800 barrier.
By territory, the increases were generalized from one year to the next in all the autonomous communities, although the evolution of the Balearic Islands (8.3%), Andalusia (7.5%), Community of Madrid (7.4%), Murcia (6.6%), Navarra (6.1%), Catalonia (5.3%), Castilla-La Mancha and the autonomous cities of Ceuta and Melilla (5.1%, respectively) stands out.

Precisely, the Balearic Islands and the Community of Madrid are crowned as the most expensive autonomous communities to become a homeowner, and are the only ones that exceed 3,000 euros/m2. Specifically, the Community of Madrid pays 3,198 euros per square meter and the Balearic Islands 3,108.7 euros. Behind them were the Basque Country (2,620 euros) and Catalonia (2,287 euros).

As for the age of the property, the price rose by 3.4% annually in houses built less than five years ago, to reach 2,217 euros/m2. On the other hand, homes built more than five years ago rose by 5.8% to 1,886 euros per square meter. Since 2010, when the Ministry's historical series for both categories became available, such a high price had not been observed.
In the case of subsidized housing, the price was 1,169.4 euros per square meter, an annual increase of 0.4% and 0.2% on a quarterly basis. Such a high amount has not been observed since 2005, when the available historical series began.

The rise in the second quarter comes after the price of housing closed 2023 with an increase of 5.3% to 1,842.3 euros/m2. A year that was strongly marked by the successive increases in interest rates to contain inflation, which cooled the market for sales and mortgages but did not have a negative impact on prices, which continue to rise due to the lack of supply to meet the existing demand.