The price of housing, both new and used, started 2025 with a year-on-year increase of 6.6% in January in Spain, according to data from the appraiser Tinsa, which indicates that in Canary and Balearic Islands this increase was 11.5% and is 7.9% above its historical highs, during the so-called real estate boom.
Tinsa points out that in real terms, discounting the effect of inflation, the increase in housing prices in January in the country as a whole was 3.6%, as highlighted this Wednesday in a statement.
The coast continues to concentrate the largest year-on-year variations in prices, with 11.5% in the islands and 9% on the Mediterranean coast.
In addition, the price of housing revalued by 6.1% in the capitals and large cities, 4.5% in the metropolitan areas and another 6.1% in the rest of the municipalities.
Compared to the previous month, December, the price of housing rose in January by 0.9%.
Large cities (0.9% monthly) and metropolitan areas (1%) were the most dynamic groups, reflecting the dynamism of a market that remains active in the face of falling interest rates.
In the islands, that increase compared to December was 0.3%.
According to Tinsa, employment remains at high levels and continues to sustain the solvency of households, which have restored their purchasing power during the last year.
In addition, this solvent demand continues to be boosted by the fall in interest rates and greater ease of access to credit.
Average prices in Spain are below the highs of 2007, except in the islands
The average price of housing in January was 12.9% below the maximum of 2007, in the middle of the sector boom.
The speed of recovery of housing was greater in the islands, which already in June 2024 exceeded the historical maximum prior to the bursting of the bubble and currently exceeds it by 7.9%.
In the capitals and large cities, the distance from the maximum of the bubble is reduced to 8.8% and the greatest distance is observed on the Mediterranean coast (21.4% below) and in the rest of the municipalities (23%).
For its part, the average value of housing in Spain accumulates a revaluation of 48.1% since it touched its lowest level in the summer of 2015.
In the islands, the increase from its post-crisis minimum is more noticeable and reaches 58.9%, four points more than in the capitals and large cities (54.9%).
On the contrary, where the price of housing has increased the least since the historical minimums has been in the rest of the municipalities (30.8%).
