The price of new and used continues to rise. It has increased by 3.8% per year in the first quarter of the year, standing at 1,743 euros per square meter, according to the Real Estate Sector Trends Report prepared by the Appraisal Society. The rise stands at 2.8% in the semi-annual comparison, which, according to the appraiser, shows that the residential market has not suffered major changes despite the war between Ukraine and the galloping one.
“For now, we see that the invasion in Ukraine has curbed the growing optimism in the sector, but that has not meant, at least for now, a change in the behavior of the residential market in Spain,” says Juan Fernández-Aceytuno, CEO Appraisal Society.
The expert also points out that there are factors such as the increase in construction costs that favor this price growth trend to continue, especially in new construction, while the increase in gas and fuel costs, and its impact on the escalating inflation implies lower disposable income for buyers, which “could curb their ability to finance mortgages, and would be a counterweight to assess”.
The x-ray prepared by Sociedad de Tasación points out that prices have risen in a general way in all the autonomous communities, although it has done so more strongly in the Balearic Islands, where housing has become more expensive by 3% during 2021. The archipelago also leads the increases between July and December, with increases of 2.2%. They are followed by Cantabria (2.1%) and the Basque Country (2%). At the opposite extreme are Extremadura and Catalonia with increases of 1%.
La (2,689 euros/m²) registers the highest average price of new and used housing at a national level, above Catalonia (2,418 euros/m²) and the Basque Country (2,305 euros/m²). On the contrary, Extremadura (905 euros/m²) and Castilla La Mancha (986 euros/m²) present the lowest average amount, both below 1,000 euros/m² on average.
In provincial terms, (3.4%) and Álava (3.2%) are the provinces of Spain where the price of housing has risen the most during 2021, followed by Cádiz with +2.9% and Toledo and Guipúzcoa, both with +2.8%.
On the contrary, the average amount has barely increased by 0.1% in Soria, while Palencia is the only province where a decrease has been registered (-0.2%).
By amount, Barcelona (€2,746/m²) continues to be the province with the highest average price nationwide, followed by the Community of Madrid (€2,689/m²) and Guipúzcoa (€2,592/m²). On the other hand, Badajoz (905 euros/m²), Ciudad Real (896 euros/m²) and Lugo (885 euros/m²) have the lowest average value.
confidence tempers
The Real Estate Confidence Index has reached 53.2 points out of 100 during the first quarter of 2022, which is the highest figure since the start of the pandemic. The indicator adds three consecutive quarters in an optimistic zone (above 50 points). However, its growth has slowed down between January and March 2022, with just a rise of two tenths compared to the end of 2021. The result contrasts with the 10.7-point advance registered over the last year.
The slowdown of the economy, geopolitical uncertainty, high inflation and the increase in energy costs, which are at maximums; These are some of the factors that explain this moderation of optimism within the real estate sector.
The appraiser explains that the result of the Real Estate Confidence Index is in line with the latest data prepared by the INE and the CIS. Specifically, in the latest study published by the CIS in February, just at the start of the contest, the Consumer Confidence Index (ICC) shows a slight increase of 0.5% compared to the previous month, reaching 89.8 points, showing a trend towards moderation.
The moderation is more evident if the Harmonized Business Confidence Index (ICEA) prepared by the INE is analyzed, whose indicator registered a fall of 2.5% during the first quarter of 2022, with declines in business prospects in all sectors of activity.
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