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Spain: House prices surged in the second Quarter of 2021

According to the latest IPV (Home Price Index) data released by the National Institute of Statistics this week for the second quarter of 2021, the price of both new and used property in Spain is constantly increasing.


Due to the low demand during the covid pandemic, this is to be expected; however, the statistics for the second quarter represents the greatest quarterly growth in the last two years, reflecting the increased activity in the property industry following the end of movement restrictions.

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The cost of ‘new’ housing has increased by 6%, while the cost of ‘used’ housing has increased by 2.9 percent, for a total increase of 3.3 percent.


In the Murciaregion, the cost of new homes has climbed by 6.8% in the last year, while the cost of used homes has increased by 4%, for a total increase of 4.4 percent.


This is primarily related to supply and demand, with fewer new properties available at the moment, especially in residential cities, as a result of the pandemic’s development halt.


Following the epidemic, there has also been a significant shift in the types of residences sought, with detached or semi-detached properties with gardens in out-of-town locations becoming more desirable. Because this type of property is not as common as the deserted inner-city flats, demand is driving up prices.


In the second quarter, the yearly rate of the IPV climbed in all 17 of Spain’s autonomous regions. The Canary Islands (6.4 percent), the Balearic Islands (5.7 percent), Cantabria (5.3 percent), and Murcia had the highest average rises (4.4 percent ). The regions with the lowest annual rate increases are La Rioja (2.3%), Castilla-La Mancha (2.4%), and Aragón (2.4%). (2.5 percent ).


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