Fernandez Perez, AdrianGómez Puig, MartaSosvilla Rivero, Simón Javier2025-10-072025-10-072025https://hdl.handle.net/20.500.14352/124571This study examines the impact of extreme temperatures on housing price dynamics in Spain, considering both direct and indirect effects across geographic space. Using panel data at the provincial level and a spatial econometric model, we find that an increase in the number of days with maximum temperatures exceeding 35 °C (95oF) over the past year is significantly associated with a decline in both sale and rental prices within the affected province. However, we also identify a positive indirect effect on housing markets in more distant provinces, particularly in the rental sector, consistent with a pattern of temperature-induced house price premium in cooler regions. These findings highlight the importance of incorporating climate-related factors into real estate market analysis and the design of adaptation policies.engworking paper2341-2356https://www.ucm.es/icae/working-papersopen accessC23Q54R14R21R31Extreme Heat TemperatureHousing PricesSpatial EconometricsEnvironmental EconomicsEconomía5304 Actividad Económica5312 Economía Sectorial