We are already in the fourth quarter of the year and that actually means the last Real Estate Market Analysis Spain of 2022. We will then return to this topic in early 2023 with a complete overview of what the past year has meant for the Spanish housing market.
General situation real estate market Spain in 2022
The average price of houses (new construction and existing construction) rose 8.5% year-on-year and 1.3% quarter-on-quarter in Q3 2022. If we put this alongside the Analysis Real Estate Market Spain Q1 and Analysis Real Estate Market Spain Q2, we see the increase in average house prices in Spain leveling off slightly . Something that is also partly explained by the season (and especially the summer break).
This slight increase shows that the housing market in Spain is still “healthy”. Much discussed issues, inflation being perhaps the most important, do have an impact. But not nearly enough to rock the Spanish housing market. Besides, it is precisely when inflation occurs that investing in bricks is the best investment, as otherwise your money will become worth less and less.
In the graph below you can see the average value per m² and you can see the annual variation. The crisis from 2008 is still clearly visible, as well as the short dip with Corona (which prevented transactions from taking place). The market is still developing well, but still not back to the level of the beginning of this century.
Property prices in Spain by autonomous region
The quarterly variations at the autonomous state level also show some moderation in house price growth, with the majority ranging between 0.1% and 2.5%. All still maintaining the positive trend.
Property prices in Spain by province
The scenario of year-on-year growth and quarterly moderation of prices is repeated at the provincial level, with most provinces recording year-on-year increases between 3% and 8%. The province of Madrid continues to lead in this as in previous quarters, with year-on-year growth as high as 9.5%.
The highest house prices per square meter are currently found in the regions of Madrid (€2,821/m2), the Balearic Islands (€2,627/m2) and the Basque Country (€2,315/m2), followed by Catalonia (€2,120/m2).
Real estate prices in Spain's main capitals
In the third quarter of 2022, almost all capital cities showed positive variations from the previous year within an upward trend that began in the first quarter of 2021. The capital Madrid recorded an increase of 8.9%, Barcelona an increase of 5% and Valencia even an increase of 9.7%, with Valencia, despite its current popularity, still proving very interesting to invest in comparison to cities such as Madrid, Barcelona and Malaga. In the other capitals, price increases are mostly between 3% and 6%.
Summary real estate analysis Spain Q3 2022
The quarter-on-quarter growth of house prices in Spain shows less variation, but still: growth. With that said, year-on-year growth is an important figure to keep an eye on – after all, you usually buy a house to own for more than a year. So if you are thinking of buying a house in Spain, now is a good time to get in.
Want more advice on investing in Spanish real estate, or hear our advice on the different regions? Let us know.