Real estate prices in Spain: changes in the capitals over the past few years

Housing prices have risen rapidly in recent years. As the evolution of the economic efforts required to become a property owner over the last 15 years shows, in addition to the natural appreciation over time, the lack of supply to meet existing demand drives prices up, although changes vary depending on the location under scrutiny.

On average, home ownership costs €40,000 more than in 2014, although in some areas such as the Balearic Islands the increase is €160,000 compared to 10 years ago. The data comes from Fotocasa's analysis of the "Accumulated change in house prices in Spain in 2024", based on February sale prices.

In particular, the cost per square meter has increased by 29% over the last 10 years, from 1,726 euros in February 2014 to 2,234 euros in February this year. Thus, someone who purchased an 80-square-meter property in Spain in 2014 paid an average of 138,000 euros, compared to 178,700 euros for a transaction in February 2024. Over the last five years, prices have risen by 18%, and since 2023, by 7%.

"The trend shows that this price increase will dominate the market year after year until supply increases," explains Maria Matos, director of research and official spokesperson for real estate.

Palma de Mallorca and Malaga have doubled their prices.

In particular, the cost per square meter has increased by 29% over the last 10 years, from 1,726 euros in February 2014 to 2,234 euros in February of this year. Thus, someone who purchased an 80 square meter property in Spain in 2014 paid an average of 138,000 euros, compared to 178,700 euros for a transaction in February 2024.

The focus can be intensified, as within the regions, changes in housing prices can also create differences between provincial capitals.

Prices fell in eight provincial capitals

On the other hand, prices have fallen in eight provincial capitals since 2014. The most significant declines compared to 2014 occurred in Zamora (-17%), Palencia (-11%), Jaén (-11%), and then in single digits are Ciudad Real (-6%), Cáceres (-3%), Lugo (-2%), Ourense (-2%), and Salamanca (-1%).

The focus can be intensified, as within the regions, changes in housing prices can also create differences between provincial capitals. There are two cities where the increase exceeds 100% over the last 10 years: Palma de Mallorca (123%) and Malaga (107%), which provide the largest increases in secondary housing prices. They are followed by Madrid, where prices have risen by 82% compared to 2014, Valencia (66%), and Las Palmas de Gran Canaria (55%).