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Galicia: Among the Communities with the Lowest Housing Price Index in Spain, As Real Estate Market Shows Resilience

Despite the current economic challenges, the real estate market in Spain continues to exhibit signs of vitality, according to recent data from the National Statistics Institute (INE). In the third quarter of this year, the price of free housing experienced a significant increase of 4.5% compared to the same period in 2022, marking the most notable increase in the last 16 years. 

This growth, especially notable in new construction with an increase of 11%, reflects the dynamics of the sector. This upward trend has been maintained for 38 consecutive quarters, indicating a persistent rise in real estate prices. Francesc Quintana, CEO and founder of Vivendex, points out that "prices are growing quarter-on-quarter in all autonomous communities, but the year-on-year rise is moderating," suggesting a possible cooling of the market in line with the decline in housing transactions. 

The autonomous communities have experienced different rates of price increases, with leaders such as Navarra, the Canary Islands and Cantabria standing out with increases of 7.6%, 6.6% and 5.9%, respectively. However, other regions such as Extremadura, Castilla La-Mancha and La Rioja have recorded more moderate increases. In Catalonia, the market shows a different behavior, with increases below the national average, reflecting the diversity in the type of housing available, from high to low rents. 

Quintana comments on the overall picture in Spain: "This cooling will probably continue if transactions continue to fall with rising mortgages". In the third quarter of 2023, 1,721 foreclosures on primary residences were recorded, representing a drop of 16.5% compared to the same period in 2022 and 36.2% compared to the previous quarter. Although foreclosures have decreased, Quintana stresses that "the rate still remains high", warning about the need to be alert to possible tensions in the coming months. 

In Galicia, the real estate market follows a similar trend to the rest of Spain, with some particularities. Several real estate portals report that the price of housing in Galicia has experienced a year-on-year increase of around 2% in November. Some portals offer different perspectives, reflecting variations in the magnitude of the increases. In the province of Pontevedra, the highest increase in the region was recorded, at 8%. These data show how the real estate market in Galicia follows the national trend, but with variations in the magnitude of the increases. 

The comparison between the different autonomous communities and the specific situation in Galicia highlights the diversity in the behavior of the real estate market in Spain. The Spanish real estate sector, as a whole, continues to show remarkable dynamism, although with signs of deceleration and regional variability.