refuges

When the real estate market gets tight, prices skyrocket and the imbalance between supply and demand worsens, one thing happens: buyers lose the few refuges they had left. In Madrid for example the ‘plan B’ Looking for a house on the outskirts, in towns like Alcobendas, Móstoles or Getafe, is becoming less and less ‘plan B’ due to the rising cost of m2 throughout the community. Another refuge that offers less and less consolation is the second-hand market, where prices are already rising faster than in the newly built housing segment. In fact, used homes are getting more expensive. faster than what happened in 2007, before the bubble burst. What has happened? That the ‘used’ housing market is increasingly tense. It is something that anyone looking for a home has probably experienced firsthand, but it is much better understood when consulting the latest statistics of the INE. They show how in a bullish scenario, marked by the general rise of prices, second-hand housing is becoming more expensive at a faster rate than brand new properties. Annual IPV rate. Total housing, new and second-hand. Percentage. What does that mean? As a good graph says more than a long explanation, the phenomenon is better understood with the infographic above, work of the INE itself. In it we basically see the evolution throughout the last months of the House Price Index (IPV), an indicator that tells us about variations in the cost of houses. If we talk about the general residential market, the IPV grew by 12.9% during the first quarter of 2026, but things change when we take out the magnifying glass and look at the differences between new and used homes. In the first case, that of brand new homes, prices at the start of the year increased by 9.1% compared to the same period in 2025. If we talk about second-hand properties, that percentage is however much higher: 13.5%. Does that mean used apartments are more expensive than new ones? No. It shows us that its market is overheating at a faster rate. And that in turn gives us a clue about where the market is tense. Can the focus be expanded? Yes. The increase in the price of the second-hand market is also clearer when we compare quarters instead of years or if we take a map of Spain and look at the different communities. In fact, there is only one where the price of new homes has risen faster than that of used homes during the first quarter of the year: the Canary Islands. In the country’s other archipelago, the Balearic Islands, the ‘photo’ is diametrically opposite. There the price of new homes rose by 2.5%, used homes by 15%. Territory Second-hand IPV 1st Q 2007 (%) Second-hand IPV 1st Q 2026 (%) National 13.0 13.5 Andalusia 15.4 13.6 Aragon 9.9 16.4 Asturias 16.4 14.8 Balearics 13.9 15.0 Canary Islands 14.2 10.6 Cantabria 12.6 14.5 Castile and León 11.6 15.8 Castile-La Mancha 15.7 11.6 Catalonia 11.6 10.8 Valencian Community 15.1 14.9 Estremadura 13.4 12.4 Galicia 13.2 14.1 Community of Madrid 11.5 14.7 Murcia Region 15.1 16.3 Navarre 11.2 12.8 the Basque Country 12.7 11.4 Rioja 9.9 15.3 What was happening in 2007? When we talk about the residential market and price increases, it is inevitable to think about 2007 because at that time Spain was immersed in an upward spiral that led to the bursting of the bubble. one year later. At that time (first quarter of 2007) the general IPV was slightly higher than now (13.1% compared to the 12.9% with which 2026 started), but new and used housing became more expensive at almost the same speed. Not today. What’s more, used properties are appreciating faster than 19 years ago. It is an important observation because it reflects the reality they live almost a dozen of communities in Spain, in which used properties are becoming more expensive today than in the run-up to the brick 2008. It occurs in the Balearic Islands, Cantabria, Castilla y León, Galicia, Madrid, Murcia, Navarra and La Rioja, although the clearest case is Aragon. There the IPV of used homes was 9.9% at the beginning of 2007. Now that indicator has shot up to 16.4%. Are there more sources? Yes. The Ministry of Housing provides another study on the subject that is interesting. Every so often the department headed by Isabel Rodríguez publishes a report on appraisals and, although it does not differentiate between new and second-hand houses, it does differ due to their age: it distinguishes between those on the free market that are less than five years old and those that are older than that age, so it is likely that they have had several owners. This classification gives a very similar reading. During the first quarter of 2026, the appraised value of homes less than five years old (completed in 2021 at the latest) stood at €2,685.2 per m2, 12.8% more than during the same period in 2025. Older homes were appraised at €2,303.8/m2, but their rate of increase was also higher, around 13.8%. What are the causes? To understand the data from the INE or the Ministry of Housing, several keys must be taken into account. One, fundamental one, is the shortage of new construction, which remains at levels much lower than those managed by the sector at the beginning of the 2000s. In 2025 the housing stock barely added 94,800 properties more and, although in the last months of the year they began another 34,200 (free housing), the truth is that Spain continues creating new homes much more speed of what raises new buildings. The result: a deficit that the Bank of Spain estimates at 750,000 houses. For reference, of the 700,000 operations closed last year, eight out of ten (78.1%) featured second-hand properties. Meanwhile, the stock of new houses fell by about 6%. “Second-hand housing continues to gain value steadily, reflecting that demand continues to look for opportunities in any type due to the shortage … Read more