Valencia remains one of the best performers in the national market, with property price growth of 4.7% in the first three months and 11.1% year on year.
Contrary to expectations and the trend in other European cities, property prices in Spain, and particularly Valencia, continue to rise. Property portal Idealista was the first to publish the quarterly results, confirming that the trend of rising prices is still in place.
While prices in Spain rose by another 3% in the first quarter of the year. Valencia’s statistics are even more impressive: prices in the capital increased by 4.7% in the first three months of the year, bringing the price growth total to 11.1% higher than the same period last year.
This level of growth is relatively rare in Spain. Valencia lags behind Balearics and Tenerife, but both islands experienced significant price declines during the Covid crisis, making it difficult to compare their growth to Valencia’s. However, Alicante is the undisputed champion of price growth in the Valencian Community, with a 15.5% year on year increase that has not been seen since the pre-property bubble era.
Although Idealista statistics are only based on asking prices, they have proven to be one of the most reliable tools in monitoring the Spanish property market over the years.
Looking at the country as a whole – the price of used housing increased by 2.9% during the first quarter of the year, leaving the square meter at €1,943, according to the latest price index from Idealista. Looking at the annual variation, the recorded price growth was 7.3% over the last twelve months. The spokesperson for Idealista, Francisco Iñareta, stated that “it seems that neither the rise in interest rates nor the increase in financing costs has managed to curb the interest of demand, which remains very high.”
He also explained that many buyers already own another property, which means that the amount they need to finance is lower or even nil. Furthermore, “contrary to what might seem, increases in interest rates and the Euribor are not being transferred with such force to the price of new mortgages currently being offered.”
The outstanding balances of banks are starting to fall, and competition between institutions remains tough. Additionally, although the number of transactions is starting to be affected, the stock of available housing remains low, and housing prices continue to experience positive variations.
According to Idealista, “we do not foresee drastic falls in the coming months, although they will certainly vary depending on the markets. In the most dynamic cities, such as Madrid, Malaga, or Alicante, we may see prices remain stable or even record some price growth.”
In the eight capitals where the price of housing has fallen in the first three months of the year, Toledo saw the largest decrease (-2.8%), followed by Tarragona (-2.3%), Cuenca (-1.8%), Melilla (-1.5%), Valladolid (-0.8%), Ciudad Real (-0.4%), León (-0.4%), and Pamplona (-0.1%). In Barcelona, prices did not move in the first quarter of the year.
However, the price growth was recorded in all the major markets, except for Barcelona. In Valencia, prices rose by 4.7%, while in Malaga, the increase was 2.2%, 2% in Palma, 1.4% in Seville and Madrid. The increases in Zaragoza (0.4%) and Bilbao (0.2%) were lower. The largest increases were recorded in Huesca, where they grew by 8%, Teruel (5.8%), Murcia (5.7%), and Soria (5.4%).
San Sebastian is the most expensive Spanish capital, at €5,191 per square meter, followed by Barcelona (€4,063/m2), Madrid (€3,935/m2), Palma (€3,531/m2), and Bilbao (€3,174/m2). On the opposite end of the table, we find Jaén, the cheapest capital, with a price of €1,094/m2.
During the first quarter of the year, prices have increased in all autonomous communities, with the largest increases being recorded in the Region of Murcia, where owners increased their expectations by 4.6%. In Andalusia, the increase is 4.2%, while in the Valencian Community, it is 3.8%. The smallest increases, all below 1%, were experienced in Asturias (0.5%), Castilla-La Mancha (0.6%), and Euskadi (0.8%).
Baleares remains the most expensive autonomous region, at €3,746/m2, which is the highest price since Idealista started collecting data. Madrid (€3,111/m2) is in second place, also recording its historical maximum. In third place is Euskadi (€2,795/m2), followed by Catalonia (€2,328/m2)
This article is brought to you by Expat Hub Valencia, a property buying agent in Valencia. Using the Expat Hub’s services, you will be able to successfully navigate Valencia’s complicated property market in no time.