Housing prices increased by 8.3% year-on-year in September

In addition to this, real estate prices increased by 1.6% compared to August 2021, showing a trend of moderate growth.

"The 2021 variations show increases in housing prices, although rather moderate compared to the year-on-year variations," says Andrea de la Hoz, senior analyst at the Research Department.

The Mediterranean coast and the islands, which were the territories that first felt the effect of the pandemic, registered the largest increases in September over the last year, up 12.1% and 10.0%, respectively, along with the 'Rest of municipalities' group, which includes the smaller towns of the peninsula mainland and the Atlantic coast, and which showed a year-on-year increase of 11.2%, maintaining the significant momentum that has begun in recent months.

The capitals and large cities showed a year-on-year increase of 6.7%, although their month-on-month growth has moderated with respect to previous months, remaining stable since August (0.4% per month). Metropolitan areas are the group with the most contained year-on-year growth (5.7%).

In the last month, a significant boost was recorded on the Mediterranean coast (5.7%), together with 'Rest of municipalities' and metropolitan areas, both with a growth of 2.2% in the last month.

"The sustained reactivation during the months of 2021 is reflected in prices, sales, mortgages and the number of building permits issued, which point to an upward trend," says De la Hoz.

Since the health crisis began in Spain, new and used housing has grown in price by 4.9%. "Variations since March 2020 show an outstanding growth dynamics in the 'Mediterranean Coast' and' Rest of Municipalities' groups," explains Andrea de la Hoz.

Both groups are above the national average, with an increase of 7% since March 2020 in the case of the coast and 6.8% in 'Rest of Municipalities'. Below the average, housing in the 'Balearic and Canary Islands' group is 1.8% more expensive than at the beginning of the pandemic; 3.7% more expensive in metropolitan areas and 4.6% in capitals and large cities.

Housing prices have increased by 23.6% since February 2015, when the general index marked the lowest point since the beginning of the 2008 financial crisis. While in the Balearic and Canary Islands housing gained 36.5% since their respective lows and 32% in capitals and large cities. In other locations the evolution has been much more moderate, such as the 13.3% increase recorded in smaller inland municipalities and 19.6% in metropolitan areas. The Mediterranean coast is at an intermediate point: 29.5% since its post-financial crisis lows, also above the national average.

Despite this upward trend and the recovery to pre-financial crisis levels, housing is still on average 29.1% below the highs reached during the real estate boom. The gap is wider on the Mediterranean coast (-36.7%) and in the metropolitan areas (-36%). On the islands, a market that did not become so expensive during the boom and which contained the subsequent falls, the average value is only 10.6% lower than in 2007.


Property in Spain