Costa News Spain Breaking News | English News in Spain.
The acceleration of house prices in Spain continues with a 12.2% increase in the first quarter 2024.
The National Institute of Statistics has reported the highest quarterly growth since the first three months of 2007.
New properties were only 0.1% behind second-hand property prices, which grew by 12.3% from January to March.
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The house price increase of 8.4% averaged in 2024 was the highest since 2007.
The price of a car has increased by 3.5% in the last quarter compared to last year.
Melilla, a North African enclave in Andalucia, and Andalucia both saw the biggest increases at 14%.
Murcia and La Rioja (13.3%); Asturias & Ceuta(13.1%); Canary Islands (12.4%); Castilla y Leon & Basque Country (12.4%); and Valencian Community (12.3%) also recorded double digit growth.
Madrid and Catalunya both reported increases of 11,6% and 11,7% respectively.
Price increases are a result of a shortage of housing, which is accompanied by lowered interest rates.
Bank of Spain estimates the total deficit of homes between 2022-2024 between 400,000 to 450,000.
The projections for this year indicate an additional shortfall of 150.000 properties, resulting in a total accumulation around 600,000.
Prices are expected to rise an average of 6.6 % in this year.
The appraisal company Tinsa has reported that the house price increase is 53.6%, since 2008 when the bubble burst.
The trend of rising prices is not likely to change in the coming years.
