Author: P. Sempere

Source: Cinco Días

The average price of housing in Spain seems reluctant to end its upward trend, continuing to grow during the last quarter of 2022 at an annual rate of 3.3%, reaching €1,507 per square meter. However, these increases are likely to be the last surges. According to the real estate consultancy Gesvalt, which published its fourth-quarter housing report on Monday, the Spanish residential market is approaching a price stabilization that should occur during the middle months of 2023.

The 3.3% appreciation between October and December follows a 4% increase in the previous quarter, which was the highest increase since the end of the pandemic. With the last quarter of the year, Gesvalt notes, there have now been seven consecutive periods with growth above 3% nationally.

A significant part of the reasons for this rise, according to the consultancy’s experts, can be explained by the response to the ECB’s interest rate hikes and their impact on the Euribor, “which may have accelerated the decision to purchase housing in anticipation of future increases.” In any case, the effects of this boost that has revitalized the market will subside, so the prediction of stabilization remains.

With an average of €1,507, the real estate market is still approaching its historical peak, recorded in the first quarter of 2008, although it remains 29.7% below it. This figure means that an average 90-square-meter home would cost €135,630, compared to €131,310 the previous year.

The increase recorded in the last part of the year is almost generalized, with the only exception being Extremadura, where there was a 1.4% drop to €844 per square meter. It is the cheapest region and the only one, along with Castilla-La Mancha, that does not exceed €1,000 per square meter. On the opposite side is the Balearic Islands, which for the fifth consecutive quarter has reached a peak of €2,611, followed by Madrid (€2,412) and the Basque Country (€2,309 per square meter).

The Balearic Islands also lead in annual price increases. For the second consecutive quarter, the regions with the highest increases have been the Balearic Islands (8.1%), maintaining its leadership in increases for the fifteenth consecutive month, Navarra (6%), the Community of Madrid (5.2%), and the Valencian Community (5.1%).

Regarding rental prices, “after a year marked by irregularity,” in the last few quarters, the price has consolidated a generally upward trend throughout Spain. In fact, in the last quarter, the only exceptions were Córdoba and Huesca, which showed annual contractions of 1.5% and 0.7%, respectively. Hot regions like Málaga, the Balearic Islands, and Barcelona continue to experience significant growth.

In terms of total figures, Gesvalt estimates that the price in Barcelona is €18.21 per square meter per month, making the Catalan capital the highest in terms of rental prices. Madrid is in second place (€15.88 per square meter per month) and Gipuzkoa is in third place (€15.61).

At the municipal level, the provincial trend is replicated. The only municipalities with rents exceeding €15 per square meter per month remain Barcelona, Madrid, San Sebastián, with Marbella joining the group in the last three months of the year at €17.28; Castelldefels at €16.19, and Hospitalet de Llobregat at €15.31 per square meter per month. Conversely, municipalities with more than 50,000 inhabitants with the lowest rental prices are Elda, Linares, Puertollano, Lorca, and Alcoy, with rents below €5 per square meter.