The average value in Spain is 24.3% below the maximum reached in 2007
The metropolitan areas are the municipalities that have appreciated the most in the last month
EDITING |
The evolution of the residential market reflects a demand for home purchases that remains active throughout the country. Both for new construction and second-hand housing. The analyzed groups, according to Tinsa, have increased their average values compared to December, except for the Mediterranean coast, which remained stable in January after the growth experienced in previous months.
The average price in Spain has appreciated by 27.4% since the minimum recorded during the financial crisis and has a cumulative drop of 24.3% since the peaks of 2007.
Cristina Arias, director of the Tinsa Research Service, highlights the good tone of demand, with sales data reflecting an upward trend, accompanied by mortgages, which also show growth, although of lesser intensity. "The residential segment continues to attract demand interest in a context of low interest rates that, combined with the inflationary trends of the economy, keep real estate as an interesting investment alternative," says Arias.
The smaller towns in the interior and the Atlantic coast have stood out in January for experiencing the highest year-on-year growth (+7.6%), followed by the islands (+7.3%). Also above the national average, the metropolitan areas of the capitals appreciated by 7% (examples of municipalities such as Torremolinos, Benalmádena, or Alhaurín de la Torre), while other points on the Mediterranean coast did so by 6.2% in the last 12 months and 5.2% for capitals and large cities.
The outlook for this year 2022 is that prices will continue to register moderate increases, given that, despite the advances, supply remains insufficient and does not keep pace with the strength of demand. "New construction continues to reactivate at a moderate speed, as reflected by the data on permits that have been growing slightly but steadily since March 2021. The growth is partly contained by the increase in construction costs, which remain high driven by the price of raw materials against a labor cost that has so far remained stable," explains Cristina Arias.
Metropolitan areas show in January the highest monthly growth rate, with an increase of 1.3%, almost doubling the national average (0.7%) and above the growth experienced by capitals and large cities and the group "Rest of municipalities," both with a growth of 0.9%. Only the Mediterranean coast maintained its average price almost unchanged between December 2021 and January 2022, recording a slight decrease of 0.1%, after the accumulated increases in previous months.
Evolution from maximum and minimum post-crisis
The average price of housing in Spain has recorded a cumulative drop of 24.3% since the peaks reached in 2007, after appreciating by 27.4% from its lowest value during the financial crisis. The capitals and large cities are the group that shows the greatest upward potential from their lows (32.8%), followed by the island territories (29.8%). This evolution places them as the groups closest to the peaks of the first decade of the 2000s. The average price in the islands is 12.1% below the peaks of the previous cycle and the capitals and large cities, 23.4%. On the contrary, the Mediterranean coast has a cumulative decline of 34.5% since 2007.
