The Housing Price Index (HPI) is a statistical operation whose objective is to measure the evolution of housing purchase and sale prices in Spain.

It provides information on the variation in prices of open-market housing, both new and second-hand.

The source of information used comes from the databases on registered homes of the General Council of Notaries, from which it obtains the transaction prices of the homes.

The HPI is one of the main indicators for monitoring the evolution of the housing market.

Some of its main uses include:

• Monitoring prices in the housing market.
• Preparation of economic and real estate studies.
• Design and evaluation of public policies related to housing and urban planning.

It also serves as a benchmark for public administrations, companies, analysts, and researchers.

The HPI provides information on the evolution of housing purchase and sale prices.

The information it provides includes the following:

• Indexes.
• Quarterly, annual and cumulative rates of price variation.
• Data on new and second-hand homes.
• Results disaggregated by territory.

The HPI includes open-market housing acquired through purchase and sale (both new and second-hand) and does not include officially protected housing or other types of properties other than residential housing.

The IPV is calculated from information obtained from actual home purchase and sale transactions registered before a notary.

The data provided by the General Council of Notaries is also used to determine the weightings assigned to each group of homes with common characteristics.

The sample used for this statistic comprises all the homes registered in the reference quarter.

The methodology used allows price changes to be measured while keeping the characteristics of the homes constant, with the aim of only reflecting the price variation. The calculation of the index follows methodological criteria harmonised at the European level.

New housing is a home that is transferred for the first time after its construction.

Second-hand housing refers to homes that have already been sold and are being bought and sold again.

The HPI offers differentiated results for both types of housing due to their specific characteristics and behaviour within the real estate market.

The HPI offers national results and data broken down by autonomous communities, which allows for the analysis of territorial differences in the evolution of housing prices.

The rates of change show how housing prices have changed compared with previous periods.

The quarterly rate reflects the behaviour of prices between one quarter and the immediately preceding quarter.

The annual rate reflects the behaviour of prices between one quarter and the same quarter of the previous year.

Furthermore, the published indices allow for variations to be obtained between any period.

The results of the HPI may differ from other real estate indicators due to methodological aspects, sources of information used and scope of coverage.

The index prepared by the INE follows statistical criteria harmonised at the European level and uses a specific methodology aimed at measuring exclusively the evolution of housing purchase and sale prices.

It therefore measures the evolution of the prices recorded in sales deeds. The HPI does not measure supply prices as other indicators developed for different purposes or methodologies do.

The INE applies different methodological and statistical procedures to guarantee the quality and reliability of the HPI.

These include the application of harmonised methodologies at the European level, the validation and refinement of information, and the statistical review and control of results.

These procedures ensure the consistency and comparability of the information disseminated, both nationally and internationally.