The real estate market is heating up again. The proof is in the price increase in the second quarter of 2024 that the INE revealed this Thursday, but also the double-digit growth rate that reaches up to 13 Spanish provinces that Idealista revealed this Wednesday.
Coinciding with a gradual decline in the Euribor, home sales have accelerated and they climbed by 20% in July, which caused their prices to increase by an average of 8%, according to the real estate portal. Especially in the aforementioned provincial capitals where double-digit figures have already been reached.
With a surprise because the city where prices have increased the most this year does not reach 40,000 inhabitants. It is Soria and it tops the list with 1,816 euros per square meter, which represents an annual increase of 19.6%. The Castilian city is followed by large capitals such as Malaga and Madrid, with 3,069 and 4,717 per square meter, the cities have seen increases of 18.3% and 17.5% respectively.
At the other extreme are Pamplona, Melilla and Palencia, where they have even fallen slightly (-0.3%). Although the Navarrese capital almost 3,000 euros per square meter (2,704), it only suffered an increase in the price of its housing of 0.8%, while in Melilla it was slightly less (0.5%).
Buying and selling is also gaining momentum, increasing by 20%, as well as the signing of mortgages which they shoot above 30% compared to last year, as reported this Wednesday by the General Council of Notaries. Experts are concerned about the situation, because they do not know “if the markets will resist this increase”, says the president of the FADEI real estate associations, Miguel Ángel Gómez Huecas, in front of the microphones of laSexta.
Gómez also warns that there will come “a time when a person from a modest neighborhood will no longer be able to buy a house with two salaries.” Proof of this are the prices per square meter practiced in the city of San Sebastianwhere it reaches 5,533 euros. However, and at the other extreme, Zamora is the cheapest city in the country with its 1,171 euros per square meter.
The market is noticing this and is demanding solutions since these price increases are much higher than the salaries of the Spanish. An issue that the President of the Government, Pedro Sánchez, does not specify, who assured this Wednesday that housing would be a “fundamental” issue to be addressed at the next Conference of Presidents, although focused on “balancing tourism activity with the well-being of residents.”
