General housing market situation in Spain in 2022
Across Spain, the average price of homes (new construction and existing construction) increased by 6.6% compared to last year and by 2.3% compared to the previous quarter Q4 2021. After the strong increase during 2021, the average price increase in the first quarter is similar to that of the previous quarter. Considering the rush and active demand at the moment, this increase in house prices reflects the situation at the moment. Despite the slight uncertainty surrounding the development of the war in Ukraine, real estate remains an alternative for protection against inflation and a good option for investors to expand their property portfolio.
In the graph below you can see the most important variables of the housing market: the number of building permits issued, the number of mortgages granted, the purchases and sales and the average sales price. After the collapse of the housing market in 2007/2008, the market is, even now, still on an upward trend.
A comparison with the 2019 figures makes it clear that we have already overcome the dip from the corona crisis.
Property prices in Spain by autonomous region
If we look at the different autonomous regions in Spain, an upward trend can be seen everywhere if we look at the figures year by year. In most of the provinces we see an annual increase between 1% and 5%.
Top 3 in terms of price increase per m² is the Madrid region (51.8%), followed by Catalonia (37.8%) and the Balearic Islands (33.4%). Further down the list we find the Canary Islands, Valencia and Andalusia.
Property prices in Spain by province
There is a price increase in 44 of Spain’s 52 provinces, with more than half experiencing a difference of between 2% and 7%. The highest prices per square metre are found in the province of Madrid (2,751 euros/m²), the Balearic Islands (2,574 euros/m²) and Barcelona (2,326 euros/m²). The lowest price per square metre in Spain is inland.
Property prices in the major cities of Spain
In general, the annual price increase in major cities has been more limited compared to the provinces, although there are peaks in Madrid and Palma de Mallorca. The most expensive city in Spain is currently San Sebastian, with 3,755 euros per square metre.
Forecast property market in Spain
Recent situations, such as the pandemic and now Russia’s invasion of Ukraine, have shown once again that you cannot look too far ahead. In any case, investing in real estate remains a good alternative to all kinds of other forms of investment. Despite price increases, also here in Spain, it still offers many opportunities and further growth potential.
Apart from all the figures and graphs, it is of course important to be able to enjoy your own Spanish casa! As far as we are concerned, happiness in life and returns can go hand in hand.
Would you like more information or advice about investing in Spanish property, or do you have another question we can help you with as an estate agent in Spain? Please let us know!