Lucas Fox Spanish Real Estate Market Report / First half 2023
SPANISH HOUSING PRICES, NATIONAL YEAR-ON-YEAR PERCENTAGE CHANGE Source: Notaries / Idealista
15%
10%
ASKING PRICES
PRICES
5%
The coronavirus had an unexpected impact on Spanish house prices, which appear to have been boosted by the pandemic. After a short, sharp slump in prices at the onset of the pandemic, with a decline of 5.8% in Q3 2020, prices started rising at the start of 2021, with a total increase of 18% between the trough of Q3 2020 and Q2 2023. Compared to the benchmarked period of Q1 2019, house prices increased by 14% according to the notaries, whilst asking prices rose by 18%, according to data from the property portal Idealista. Having risen for seven consecutive quarters since Q1 2021, often by double digits, the latest data from the notaries shows sales prices falling by 0.5% in Q1, and 2.7% in Q2, whilst asking prices from Idealista
show vendor expectations accelerating to a 7.6% increase in Q2. Though not moving in lockstep, both indices trace a broadly similar curve of rising prices in the wake of the pandemic, which can be partly explained by rising demand coupled with a shortage of homes for sale in the big cities and urban areas that dominate the market. Looking further back using data from the notaries based on actual sales, the average national house price has risen by 25% over the last decade, with big regional variations such as a 78% increase in the Balearics, and 51% increase in Madrid. Overall, the Spanish house price trend in recent years has been steadily upwards, a small dip at the start of the pandemic notwithstanding.
0%
SALES PRICES
-5
-10% Q1 2014 Q3 2014 Q1 2015 Q3 2015 Q1 2016 Q3 2016 Q1 2017 Q3 2017 Q1 2018 Q3 2018 Q1 2019 Q3 2019 Q1 2020 Q3 2020 Q1 2021 Q3 2021 Q1 2022 Q3 2022
Q1 2023 Q2 2023
SPANISH HOUSE PRICES INDEX Source: Notaries
130
120
110
100
90
80 Q1 2014 Q3 2014 Q1 2015 Q3 2015 Q1 2016 Q3 2016 Q1 2017 Q3 2017 Q1 2018 Q3 2018 Q1 2019 Q3 2019 Q1 2020 Q3 2020 Q1 2021 Q3 2021 Q1 2022 Q3 2022
Q1 2023 Q2 2023
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