Housing prices in Spain have accelerated, rising by 8.1% in the third quarter, according to data from the INE released at the end of last week.

This marks the largest increase in two and a half years, a period when the market was beginning to recover from the pandemic slowdown before being impacted by rising interest rates.

However, the trend has now shifted, showing significant growth since the start of 2024, making home buying increasingly expensive.

In terms of property type, new homes experienced the highest price increase between July and September, rising by 9.8%, though at a slower rate compared to the previous period. This marks a break from the two consecutive quarters where price increases were just above 10%.

Meanwhile, the price of second-hand housing, which makes up the majority of the market supply, has been steadily rising since late 2023. In Q3, used property prices increased by 7.9%, indicating a continuous rise that has been ongoing since the second quarter of 2014.

This latest increase in housing prices, both for new and second-hand homes, follows a 7.8% rise in Q2.

During that period, new homes saw their highest increase in nearly 17 years, climbing by 11.2%, while second-hand homes rose by 7.3%, La Vanguardia reports.

Compared to the previous quarter, housing prices increased by 2.8% in the second quarter. With this new rise, housing prices have now experienced three consecutive quarters of growth.

Furthermore, across all autonomous communities, housing prices are rising, with the largest increases seen in Navarra (10.7%), Andalucía (10.6%), and Aragón (10.3%), the only regions where the price hikes reached double digits. 

Other regions with increases above the national average include La Rioja (9.2%), Murcia (9%), Cantabria (8.9%), Comunidad Valenciana (8.8%), Ceuta (8.5%), País Vasco (8.4%), and Extremadura (8.2%).

In contrast, Madrid and Catalonia experienced price increases below the national average, with rises of 7.2% and 6.8%, respectively. The smallest increase was recorded in the Balearic Islands, where prices grew by 5.8%.