The price of housing rises 2.9% in the first quarter

The price of used housing (resale) in Spain registers a rise of 2.9% during the first quarter of the year. This increase leaves the square meter at 1,943 euros according to the latest price index. Considering the annual variation, prices have increased by 7.3% in the last twelve months.

It seems that neither the rise in interest rates nor the increase in the cost of financing have stopped interest in demand, which continues to be very high. Data indicates that a very important part of the buyers already owns another home, which means that the amount they need to finance is less or even nil.

Additionally, and contrary to what it might seem, the rises in rates and the Euribor are not being transferred with such force to the price of the new mortgages that are offered at the moment. Outstanding bank balances are beginning to fall and competition between entities continues to be tough. In addition, although the number of operations is beginning to suffer, the available housing stock is still low and housing prices are still showing positive variations.

We do not contemplate drastic falls in the coming months, although of course they will vary according to the markets. In the most dynamic cities, such as Madrid, Palma, Barcelona, Valencia, Malaga, or Alicante, we may see how prices are maintained and even continue to increase”.

The large capital markets see expectations of the sellers increased

Except for Barcelona, the large markets saw how the expectations of sellers increased. In Valencia, they registered a rise of 4.7%, while in Malaga the rise was 2.2%, 2% in Palma and 1.4% in Seville and Madrid.

San Sebastián is the most expensive Spanish capital (5,191 euros/m2), followed by Barcelona (4,063 euros/m2), Madrid (3,935 euros/m2), Palma (3,531 euros/m2) and Bilbao (3,174 euros/m2). On the opposite side of the table, we find Jaén, the cheapest capital, with a price of 1,094 euros/m2.

The communities of the Balearic Islands and Madrid continue at maximums

During the first quarter of the year, prices have grown in all the autonomous communities. In Andalusia, the rise is 4.2% while in the Valencian Community it remains at 3.8%.

The Balearic Islands continues to be the most expensive autonomous region, with 3,746 euros/m2. It is followed by Madrid (3,111 euros/m2), which also registers its all-time high. In third position is Euskadi (2,795 euros/m2) followed by Catalonia (2,328 euros/m2). On the opposite side of the table, we find Castilla-La Mancha (895 euros/m2), Extremadura (952 euros/m2) and the Region of Murcia (1,130 euros/m2), the cheapest communities.

The provinces of Murcia, Huesca and Valencia registered the highest increases

Only two provinces have experienced price drops during the first quarter of the year. The largest occurred in Cuenca (-2.2%). In Valladolid, prices have only changed one tenth (-0.1%) and in Toledo and Badajoz they have not moved. On the other hand, the biggest increase was in the Lleida brand, with an increase of 4.7%. They are followed by Murcia (4.6%), Huesca (4.5%) and Valencia (4.4%). In Madrid, prices rose 1.6% and in the province of Barcelona the price rose 0.2 %.

The ranking of the most expensive provinces is led by the Balearic Islands, with 3,746 euros/m2, followed by Guipúzcoa (3,392 euros/m2). Behind them are Madrid (3,111 euros/m2), Málaga (2,849 euros/m2), Vizcaya (2,721 euros/m2) and Barcelona (2,679 euros/m2).

So it goes as we have foreseen the last year and we still believe that we will reach an all time high in 3 quarter of 2023…and the we aim towards a new high.

So don’t wait to buy real estate – buy real estate and wait 😊