The average price of new housing in Spain increased by 7.1 percent over the last twelve months to reach €2,732/m2 in December 2022, according to a report published by the Sociedad de Tasación, a company that specialises in property valuations, appraisals, and housing market data.
New house prices accelerated their growth in the second half of 2022, due to “a series of factors such as the lack of new housing stock, the high demand for new build property, which exceeds the supply available on the market; the increase in construction costs and raw materials and the congestion of supply chains and the increase in the cost of financing,” according to the report.
In the report, Juan Fernández-Aceytuno, Sociedad de Tasación’s CEO, explained that “the real estate sector has been performing well in recent months despite the macroeconomic context in which we find ourselves”.
Yet despite this rise, the December 2022 price/m2 is still nowhere close to the 2007 pre-housing bubble bursting price, when the average price of a new home in Spain reached €3,000/m2.
By region, the largest annual increases were in the Balearic Islands, where the average price of a new build home went up by a whopping 9.1%, and in Madrid, where it increased by 8.5%.
Prices grew the least in La Rioja 3.9%, Castilla-La Mancha 4.2%, and Extremadura 4.4%
On the Canary Islands, prices were up 6.9%, and the other regions favoured by foreign buyers like Andalusia 7.1%, Valencia 7.0% Catalonia 6.2% and Murcia 6.2% all saw significant rises.
the number of years of full salary that an average citizen needs to purchase a medium-sized home in a particular area, increased by a tenth during the fourth quarter of 2022 and now sits at 7.6 years.
Like with the price rises, however, there are some major variations in this index based on where exactly in Spain you are. In Madrid, this figure is 9 years, for example, but in La Rioja it takes just 4.6 years to save up to buy a property.
Much like with its eye-watering annual price rise, the Balearics also buck the national average in terms of the affordability index: according to Sociedad de Tasación’s index a buyer would need 16.4 years of full salary to be able to save up and buy a home there.
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