Spain’s second‑hand home prices jumped 20.4% year‑on‑year in January (avg €2,897/m²), the biggest rise in 20 years, as supply fails to meet demand.
Spain’s housing market opened the year with a sharp acceleration in prices: second‑hand homes for sale rose 20.4% year‑on‑year in January, the largest annual increase recorded in two decades, according to the Fotocasa Real Estate Index.
Monthly movement was also positive, with a 0.6% increase compared with December. The portal reports an average asking price of €2,897 per square metre in January — putting the typical 80 m² home on the market at roughly €231,744. Fotocasa notes this sustained rise is the strongest since it began compiling records and leaves average prices within striking distance of the 2007 peak.
Why prices are rising so fast
Analysts and Fotocasa attribute the rapid price gains not to a speculative bubble but to a profound mismatch between supply and demand. New construction remains insufficient to meet current buyer appetite, tightening the resale market and driving up asking prices. The portal’s forecasts point to further record highs in the coming months, a prospect that will likely worsen affordability for middle‑ and lower‑income households.
Regional performance
All 17 autonomous communities registered year‑on‑year price rises in January. The biggest increases were concentrated in:
• Region of Murcia: +27.1%
• Andalusia: +24.5%
• Valencian Community: +23.8%
• Asturias: +23.3%
• Madrid: +19.6%
• Cantabria: +19.0%
• Canary Islands: +18.6%
• Balearic Islands: +14.4%
• Galicia: +14.0%
• Catalonia: +12.8%
• Basque Country: +11.4%
• Castilla‑La Mancha: +10.2%Price per square metre also shows large regional variation. The most expensive markets were the Balearic Islands (€5,293/m²) and Madrid (€5,225/m²) — the latter exceeding €5,000/m² for the first time in Fotocasa’s series. Other high‑price regions include the Basque Country (€3,684/m²), the Canary Islands (€3,325/m²) and Catalonia (€3,246/m²). Several regions now report average asking prices above €2,000/m², increasing pressure on local affordability.
What this means for buyers and policymakers
• Buyers: Those priced out of high‑cost markets may shift to smaller homes, different regions or rent longer, further tightening demand at lower price points.
• Sellers: Current conditions favor sellers, who can command higher asking prices and face rapid sales in popular areas.
• Policymakers: The data underlines the need to ramp up housing supply — both affordable and market‑rate — and consider targeted measures to protect vulnerable households.Fotocasa’s January data signals a powerful price rebound in Spain’s second‑hand housing market driven by a supply shortfall and strong demand. With forecasts pointing to new records, affordability pressures are likely to intensify unless construction and housing policy responses accelerate.
