Housing prices in Spain rose by 3.3% in the second quarter of 2021 compared to the same period last year, with growth seen in all autonomous communities, especially tourism destinations, and especially noticeable in new properties. A 3.3% increase in the period from April to June was the highest since late 2019, according to the House Price Index for Spain from National Institute of Statistics (INE).
The rise in home prices in the second quarter was driven by new developments, which rose by 6% year-on-year to the highest level since the fourth quarter of 2020, when growth came in at 8.2%. The rally was sparked by the high demand for this property type, which exceeds supply in many major cities.
Meanwhile, prices for existing homes rose at a slower pace. However, there was still a solid increase of 2.9% on a yearly basis, up from the previous quarter’s rise of 0.7% and the highest since late 2019.
Experts believe that growth will be subdued in the coming months. However, no decline is expected. “As long as there is such intensity in the market, it is possible that prices will continue to rise, although we do not expect a very sharp increase,” said Maria Matos, spokeswoman and research director for Fotocasa.