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Spain home prices see record growth in 2024

5 min read

  1. Spain's property price evolution: 11 consecutive years of growth
  2. Property value rises by region
  3. Why are home prices spiralling?
  4. Pre-owned vs new-build homes
  5. Could 2007 happen again? Not imminently, say experts

SOARING home prices last year reached levels not recorded since the height of the property boom and more than doubled increases seen in 2023, with the southern region of Andalucía leading the field.

Latest figures released by the National Statistics Institute (INE) show that residential property values went up by 8.4% in 2024 – the greatest leap since 2007, when prices reached their highest in history.

Back then, the average year-on-year increase nationwide was 9.8% - just before the housing bubble burst, sparking a long recession and sending prices into freefall for the next six years.

Real estate price and house tax cash coins
Spanish residential property values went up by 8.4% in 2024 – the greatest leap since 2007. Photo: Getty Images

The INE's Housing Prices Index (IPV) reveals that home values rose by 4% in 2023, around the average for the preceding decade, but that another 12 months would see growth swell 2.1 times that amount.

New builds rose in value in 2024 by 10.9% - compared with the unprecedented 2007 high of 11.9% - whilst pre-owned homes price hikes, at 8%, almost levelled with those of the peak property period, which saw them jump by 8.2%.

Line graph showing home price evolution in Spain from 2007 to 2024 inclusive
Residential property values have been climbing since the recession ended - and experienced a record surge in 2024. Data source: INE

Spain's property price evolution: 11 consecutive years of growth

After hitting rock bottom in 2012 and 2013 – with property values plunging by 12.7% and 10.6% respectively – prices have been rising consistently every year, INE data show.

A 15-year record high came in 2022 after a pandemic-related slump, with price growth hitting 7.4% - largely caused by spiralling global inflation and a transport crisis forcing up the cost of building materials.

The European Central Bank (BCE)'s decision to apply the steepest interest rate hike since the birth of the common currency – from below zero to over 4% in 10 months – stifled property price growth dramatically in 2023.

But falling Eurozone interest rates – averaging 2.425% in March 2025 – have led to a fresh surge in Spain's home prices, with increases now breaking the record set by 2022.

Property value rises by region

Price growth last year was slightly below average in some of Spain's most high-demand, low-supply housing crisis hotspots – most notably in the Balearic Islands, second from bottom at 6.6% and only beating Castilla-La Mancha (6.5%).

The two exceptions were the Comunidad Valenciana (9.1%) and Andalucía – which tops the list at 10.4% across the board and 13.4% for new builds.

In the north, Navarra equalled Andalucía, and Aragón (10.2%) and La Rioja (9.2%) beat the Comunidad Valenciana, which was level-pegging with the north-Africa based Spanish satellite city of Ceuta.

Higher-than-average increases were also seen in Cantabria (9%), and Murcia and the Basque Country (both 8.5%).

Even in regions with below-average home value rises, these were typically at least equal to or greater than Spain's previous post-recession record in 2022. This means little respite in areas where affordable housing is notoriously hard to find, such as the Canary Islands (up 8%), Madrid (up 7.7%), and Catalunya (up 7.4%).

Elsewhere, Spain's other extra-continental city of Melilla matched the Canaries at 8%, whilst Asturias and Castilla y León recorded 7.8% price rises, Galicia 7.4%, and Extremadura 7.3%.

Why are home prices spiralling?

According to Spain's Quantity Surveyors' Society (Sociedad de Tasación), the gulf between supply and demand 'has never been wider', due to a rising population, an increase in the number of single-person households, and a growing focus on property as an investment rather than simply somewhere to live.

The supply-demand gap is evidenced in research by the Bank of Spain, which points to a national deficit of around half a million properties.

And the IPV's annual price comparison indicator shows the effect of this situation over time: Taking year-end values from 2015 as a base, the cost of buying a home was 60% higher as at December 2024.

In the case of new builds, the indicator shows they are now 85% more expensive than in 2015 – largely because they are the more sought-after option, but also the least available. Construction activity ground to a halt with the 2008 housing market crash and, even today, only around 2.3 new properties are built for every 1,000 adult residents in Spain.

Pre-owned vs new-build homes

Leading industry experts say brand-new properties appeal to buyers who do not want the hassle or expense of carrying out refurbishments - despite their higher price tag, they often work out more economically viable than pre-owned homes, where customers have to factor in extra funds for renovations. For this reason, the new-build market can generally withstand considerable cost increases without the risk of a downturn.

The same cannot be said of pre-owned homes, however, being in the majority and the only option for buyers on a budget. Although everything points to a renewed price rise in 2025, the BBVA bank's chief economist believes it won't be long before the tide turns.

In places where homes are increasingly less affordable, such as on the islands, it's unlikely prices will continue to rise at the same pace,” Miguel Cardoso points out.

Many buyers are not willing to, or simply cannot, pay any more, so demand is already starting to decline.”

Pre-owned home value changes offer a more faithful reflection of buyer behaviour than those of new builds, Cardoso says, since it is household income – rather than availability or desirability – that dictates prices over time.

Could 2007 happen again? Not imminently, say experts

Swelling home values usually indicate a solid and growing national economy, although concerns about a repeat of the post-2007 crash are fully understandable: The devastating impact on jobs, households and the economy was something Spain has no desire to live through again.

Whether seen in a negative or positive light, though, some experts stress that the record rises of 2024 may not be all they seem.

The figures published don't take into account the effects of inflation between 2007 and 2024,” points out economy professor José García Montalvo of Barcelona's Pompeu Fabra University.

With wage increases and price rises across the board since then, home values in real terms are 'still at least 15% to 18% lower than at the height of the housing boom', he calculates.

And whilst property prices have been growing non-stop for over a decade, the rate of this growth has fluctuated. The most significant hikes have come in the wake of periods of slowdown sparked by international events, as demonstrated by INE data - meaning they mainly represent a healthy recovery.

Eventually, it looks likely that home values will return to 2007 numbers, according to various estimates, but by then, these values will align more closely with income levels and the cost of living than they did 18 years ago.

Meanwhile, the choice of homes in Spain is endless, and prices vary dramatically with options available for almost any budget. Take a look at what's on the market right now in our property for sale section.

The information contained in this article is for general information and guidance only. Our articles aim to enrich your understanding of the Spanish property market, not to provide professional legal, tax or financial advice. For specialised guidance, it is wise to consult with professional advisers. While we strive for accuracy, thinkSPAIN cannot guarantee that the information we supply is either complete or fully up to date. Decisions based on our articles are made at your discretion. thinkSPAIN assumes no liability for any actions taken, errors or omissions.

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