The real estate market in Spain continues to show signs of strength and dynamism, especially in the used housing segment. During the second quarter of 2024, the price of used housing in the country experienced a year-on-year increase of 7.5%, setting the cost per square foot at $230.50, according to the latest price index from the real estate portal Idealista. This rise reflects a new historical high and persistent demand in a market characterized by limited supply.

During June, seven Spanish capitals reached all-time high prices for used housing. These cities include Madrid, Barcelona, Palma, Málaga, Cádiz, Valencia, and Las Palmas de Gran Canaria. Málaga, in particular, has led the price rise with a 19.9% increase in the last year, making it the capital with the highest price increase. It is followed by Alicante (16.9%), Valencia (14.7%), Santander (13.7%), Soria (13.6%), Madrid, and Santa Cruz de Tenerife (12.4% in both cases).

Leif Orthmann, Managing Partner of The Agency Marbella - The Belleside Team, comments: “The main problem facing the real estate market today is the lack of available supply. The absence of new construction in the market is alarming. This shortage of new housing places a burden on used housing, which cannot absorb the current demand and push prices up. The lack of product also affects the number of transactions that close. It is necessary to take measures and streamline processes for promotion, especially in the most stressed markets.”

San Sebastián remains the most expensive capital in Spain, with a price of $588 per square foot. Madrid and Barcelona follow on the list with prices of $486/sq ft and $477/sq ft, respectively. On the other hand, Zamora is the cheapest capital, with a cost of $124/sq ft.

Regarding the situation in the autonomous communities, data on the portal shows price increases in all regions over the last 12 months. The Canary Islands registered the highest growth at 15.4%, followed by the Balearic Islands (10.7%) and the Valencian Community (10.3%). The Balearic Islands remain the most expensive region, with a price of $471/sq ft, followed by Madrid at $370/sq ft, recording their highest prices ever. On the opposite side, Castilla-La Mancha ($101/sq ft) and Extremadura ($106/sq ft) are the most economical regions.

The province of Málaga has shown remarkable performance in the real estate market. With an 11.3% increase in the price of used housing in the last year, Málaga stands out for its tourist appeal and robust real estate market. The average price in the province is $353/sq ft, making it one of the most expensive in the country, surpassed only by the Balearic Islands, Guipúzcoa, and Madrid.

Benjamin Baza, Sales Director of The Agency Marbella - The Belleside Team, notes: “The sustained growth in the price of used housing in Málaga reflects the growing demand and attractiveness of the region. Our mission at The Agency Marbella is to provide our clients with high-quality housing options and a deep understanding of the market. We are committed to helping our clients navigate this dynamic real estate environment.”

As of June 2024, the housing market in Spain continues to show an upward trend, driven by robust demand and limited supply. The rise in prices in capitals and provinces reflects the existing pressure in the used housing market. With notable increases in places like Málaga and the Canary Islands and record highs in several cities, the Spanish real estate landscape remains competitive and attractive to investors and buyers.