Property
S pr pa o in in per ’s b En ty es gl ma t ish g
www.theolivepress.es
OLD MEETS NEW
Discover the ultra-modern home hiding behind an See page 15 old facade
OCTOBER 2024
THE BEST OF 2024 Discover a selection of the shortlisted designs for the prestigious Dezeen Architecture awards, while (below) the rural escapes that are high on style
See page 24
See page 18
PRICES SOARING THE Spanish government has been slammed as housing prices continue to skyrocket across the country, with the national average rising by 8.7% over the past year. A report by property portal Idealista reveals the average price now stands at €2,182 per square metre, though the increases have been particularly steep in certain regions and cities. The rapid rise in house prices has sparked concern that government policies are failing to address the critical issue of affordable housing. Francisco Iñareta, spokesperson for
By Walter Finch
Idealista, attributed the surge to a combination of factors, including inadequate land development, bureaucratic obstacles, labour shortages, and unchecked population growth in high-demand areas. “Used housing is unable to meet growing demand, and in the face of a shortage of supply, prices are rising sharply,” Iñareta said, calling for immediate government intervention to accelerate new housing construction.
The crisis has been most pronounced in Spain’s provincial capitals, with Madrid and Barcelona experiencing price jumps of 17.8% and 16.7% respectively. In San Sebastian, the country’s most expensive city, housing prices have soared to €5,570 per square metre, underscoring the widening gap between Spain’s major urban centres and more affordable areas like Zamora, where prices remain at €1,175 per square metre. Malaga has emerged as the priciest provincial capital in Andalucia, with an average of €3,095 per square metre, marking a 17.9% increase over the past
year. Andalucia’s Jaen province remains one of the most affordable regions, with prices as low as €838 per square metre. Elsewhere, Valencia saw a 17.6% rise followed by Santander (16.7%). Next in line are Alicante (15.9%), Granada (15%) and Soria (13.5%). Prices have also risen in Palma (10.2%), Barcelona (9.8%), Sevilla (7.8%), Bilbao (6.1%) and San Sebastian (4%). The rising cost of housing is putting significant pressure on buyers across the country, with many now spending over 30% of their income on mortgage payments. The lack of affordable new-
Lack of new housing developments blamed for driving up house prices in Spain by 8.7% in a year build properties has created a ‘perfect storm’, according to Idealista, leading to a national housing crunch that is showing no signs of easing. Idealista’s report calls for urgent policy reforms, including measures to streamline the construction process and incentivize large-scale developments in high-demand areas. Without swift action, housing prices in Spain’s most dynamic cities and regions are expected to continue climbing, further exacerbating the housing affordability crisis.