The average price of new homes as a whole has accelerated after experiencing an increase last year.6.4% on an annual basis, reaching 2,809 euros per square meter According to the new edition of the ‘Real Estate Industry Trends Report’ prepared by the Valuation Association, in June despite the context of the current increase in interest rates and slowdown in home sales.
However, although new house prices continue to rise, data recorded in mid-2023 are still far from the maximum levels recorded at the end of 2007. 3,000 Euros per square metre.
Consuelo Villanueva, Director of Institutions and Major Clients at the Valuation Association, explained that these price increases were mainly due to the low supply of new housing compared to demand.
According to the report, all regions recorded annual increases ranging from 3.4% in Castilla-La Mancha to 8.2% in the Balearic Islands, which recorded the highest annual growth ahead of Madrid (7.6%). lived.
However The Valuation Association has detected a slowdown in these increases. In all autonomous regions except La Rioja, the only community whose unit price increased faster than the previous semester compared to 3.9% in December 2022.
Construction cost increased 8.1% in the last twelve months
According to the report, in June 2023 the cost of building new construction reached 1,201 euros per square meter, representing an annual increase of 8.1% compared to a year ago.
This indicator is also experienced A slight increase of 1.6% in the second quarter of the year, compared to the previous one. On the other hand, while the above-ground construction rate is 966 Euros per square meter, the underground construction rate reaches 436 Euros per square meter.
Real estate confidence index fell below 50 points
Valuation Association Real Estate Confidence Index reached 47.5 points out of 100 in the second quarter of 2023.
However, it also breaks four consecutive quarters where this indicator is above 50 points, reflecting the indicator limit of a stable situation. This was also the fourth consecutive drop for the Real Estate Confidence Index.
In particular, Index deTrust fell three-tenths compared to the first quarter of the year, while at 47.8 points. These results continue in line with the current macroeconomic volatility scenario, marked by the ongoing inflationary pressures and the continuation of the restrictive monetary policy, and a feeling of uncertainty that is also reflected in the real estate market.