House prices in Spain rose by 8.6% in 2024, the highest increase since at least 2007, according to figures released on Friday (7 March) by the Spanish National Statistics Institute (INE).

In 2024, the price of buying and selling houses in Spain rose for the 11th consecutive year, as well as recording the biggest increase since 2007, the first year since comparable records have been kept, the INE said.

The price of second-hand homes rose by an average of 8 per cent last year compared to 2023, while new homes increased by 10.9 per cent. In both cases, this is the highest since 2007, according to the same data.

The INE revealed that in 2024, house prices in Spain will rise by an average of 6.3 per cent in the first quarter (compared to the same period in 2023), 7.8 per cent in the second, 8.1 per cent in the third and 11.3 per cent in the fourth. The overall price increase in 2023 was 4 per cent.

Various organisations attribute the rise in house prices in Spain essentially to a shortage of supply in the face of growing demand, linked to the increase in population.

According to a recent estimate by the Bank of Spain, there is a shortage of 500,000 homes in the country.