THE AVERAGE price of second-hand housing in Spain rose by 8.86% last year, according to the annual price report compiled by online portal pisos.com

In December, the average price per square metre stood at €2,160, after increasing by 0.51% compared to November and 3.41% compared to the third quarter.

The annual price hike happened despite the total number of home sales and new mortgages falling sharply.

Director of studies at pisos.com, Ferran Font, said: “The chance of a price collapse in 2024 can be discarded since the lack of supply is containing decreases in prices.”

By provinces, the most biggest year-on-year increases were in Santa Cruz de Tenerife (16.55%), Valencia (16.52%) and Malaga (16.49%), with parts of those areas producing annual rises of nearly to 20%.

In terms of falls, the major provinces were Ourense (-4.09%), Zamora (-3.59%) and Alava (-1.36%).

Looking at provincial capitals in 2023, Valencia (19.69%), Malaga (19.08%) and Santa Cruz de Tenerife (18.14%) saw the highest price rises in second-hand accommodation.

Those that fell the most were Zamora (-7.36%), Salamanca (-1.55%) and Córdoba (-0.43%).

Ferran Font believes that the property market is stabilising after a post-Covid boom period.

“Figures for transfers and loans for house purchase are settling into a normal environment as we come from record sales years while the rise in interest rates and the erosion of savings did not help to sustain this scenario of sales growth for much longer,” he commented.

Font warns nevertheless that ‘financing is now more expensive, but this will not hold back demand as long as the granting criteria are met and the quota is adjusted to a reasonable borrowing capacity’.

“What will be more complicated will be finding a product because developers are being cautious with new projects resulting in a more competitive second hand market,” he concluded.

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