House Prices In Spain Rise At Biggest Rate Since 2007 Due To Property Shortage And Lower Interest Rates – Olive Press News Spain

THE acceleration in house prices is continuing in Spain with a 12.2% annual rise in the first quarter of 2024.

The National Institute of Statistics reported that its the biggest quarterly rise since the first quarter of 2007.

Second-hand prices went up by 12.3% between January and March, with new properties just 0.1% behind.

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The first quarter increase comes after house prices rose by an average of 8.4% in 2024- the highest rate of rise since 2007.

On a quarter to quarter basis, prices went up by 3.5% compared to the last three months of last year.

The biggest increases were in Andalucia and the North African enclave of Melilla- both on 14%.

Also reporting double digit rises were ove the average were the increases in Murcia and La Rioja(13.3%); Asturias and Ceuta (13.1%); the Canary Islands, Castilla y Leon and the Basque Country (12.4%) and the Valencian Community (12.3%).

Madrid and Catalunya reported rises of 11.6% and 11.7% respectively.

A shortage of available housing is one of the driving forces for price hikes coupled with lowering interest rates.

The Bank of Spain has estimated the accumulated deficit of properties between 2022 and 2024 at between 400,000 and 450,000 homes.

Projections for this year suggest an extra shortfall of 150,000 properties, meaning a total accumulation of around 600,000.

It’s predicted that prices will rise by an average 6.6 % this year.

Figures from appraisal company Tinsa show that house prices have gone up by 53.6% since the property bubble burst in 2008.

There is no suggestion of the trend of price rises buckling in the next few years.