According to the report of the Idealista real estate portal, prices for Spanish residential real estate on the secondary market recorded an increase of 3.4% year-on-year at the end of the second quarter of 2022, reaching an average of €1,890 per sq.m. The record for many regions, but collectively still 8% below historical highs, was recorded in June 2007.
Major markets such as Madrid, Palma and Malaga can boast record figures that surpassed the historical highs of the market boom before the 2008 crisis. In Madrid, the cost per square meter was €3,900, in Palma — €3,353 and in Malaga — €2,240.
In some areas of the Spanish capital, there was a particularly record increase in housing prices. It is worth paying attention to Salamanca, Chambery and Chamartin. At the end of the second quarter of this year, housing in Salamanca rose by 9.8% (to €6,660 per sq.m.), in Chambery, the growth was 7.7% (to €5,700), and in Chamartin — 6.7% (to €5,530). Prices also increased in Tetuan and Hortaleza — by 6.9% and 5%, respectively. The average price of residential real estate in Tetuan has exceeded €3,900 per sq.m., and in Hortaleza, it has reached €4,000 per sq.m.
In contrast to Madrid, Barcelona shows a 5.7% drop in prices. So, by July 2022, average housing prices in Barcelona fell to €4,030 per square meter. Barcelona is unlikely to break its previous record of €4,279 in September 2018.
Some parts of the Catalan capital also did not show any record. There are prospects only in two expensive areas of Sarria-Sant Gervasi and Eixample. The first increased by 2.5%, reaching a cost per square meter of €5,380, and the second grew by 8.6%, reaching a price per square meter of €4,875. Housing prices in these parts are just over a percent away from record peaks.
However, due to the overheating of the Spanish housing market, Barcelona may be more reasonable in the long run.
In any case, San Sebastian was and remains the most expensive city in Spain. The capital of Gipuzkoa has set a new historical maximum for housing prices, for the first time exceeding the bar of €5,110 per square meter. Gros and Amara played a big role in this record, with annual growth of 6.2% and 10.7% in July. For the third quarter, the cost per square meter in Gros was about €6,140, and in Amara — €4,800.
Records were also broken in Palma, the capital of the Balearic Islands. With record growth in 11 of the city’s 15 districts, the archipelago’s capital broke three-month housing price records throughout the second quarter. According to Idealista, the three-month increase in home prices was the result of an annual rise of 9.8%. July reached €3,350 per square meter. Among the 11 districts, Son Vida (32.2%) and Portixol-Molinar (25.2%), Genova – Bonanova – Sant Agusti (15.2%) and Santa Catalina – Son Armadans – Maritim are the growth leaders (13.4%).
Malaga also broke price records. This is the 4th time this year when the local market sets peaks in housing prices. Campanillas (17.3%) and Churriana (16.6%) had the greatest growth, where the maximum average price reached €1,640 and €2,090 per square meter, respectively.
The last city worthy of attention is Las Palmas de Gran Canaria, the capital of Gran Canaria. Here, prices have overcome historical highs set in April 2008, during the real estate boom and after the Great Recession. In April 2008, the price to buy housing was €2,104 per square meter, and at the end of the second quarter of 2022, it was €2,113.