HE price living place continue until the first semester of the year, 4.8% per annumAccording to the latest report published by Spain’s largest appraiser, tinsa. Specifically, the increase was 0.9% in the first quarter and 0.6% in the second quarter. Although the upward trend continues, these increases are gradually decreasing. “Price slowdown continues to consolidate residence and its stabilization tendency It has been observed since the first months of the year,” explains the study.
At the end of the first period, prices were 20.3% below the maximums reached in the real estate bubble and 35% above the minimums recorded thereafter. The average square meter of a house in Spain is 1,723 euros.Equivalent to paying around 130,000 Euros for a 75 square meter property.
Slight increases in prices occur in the context of less activity in the real estate market: sales figures decreased by 13% compared to the previous year and 9.5% above average; while regressing number of contracted mortgages older, one 25% less than a year ago and 1.4% less than 2019 levels and the historical average. According to Tinsa, the better performance of sales is “sustained in part by an increase in transactions by resident foreigners” in Spain. “Throughout the year We continue to expect a moderation in trading without this implying a collapse.As inflation falls, the purchasing power of households will return to its former state,” they said.
In which regions is housing increasing the most?
Balearic Islands It is the only autonomous community in the whole of Spain. prices are now higher than the top of the housing bubble. It was also the region where prices increased the most, with the Canary Islands and Comunidad Valencia, with a revaluation of more than 2% in the second quarter and 7.1% in the last twelve months.
If we examine the last twelve months, The region where prices increased the most was La Rioja The proportion of residential properties was 8.3%, followed by Aragón (8%), Cantabria (7.5%) and Comunidad Valenciana (7.4%).
Inside Community of Madrid, the average house price rose 4.4% last year and 1.4% in the last quarters; while in CataloniaThe annual increase was 1.4%, the lowest of all Autonomous Communities, and remained stable in the second half.
Almería, Valencia and Malaga have been the cities with the most increases in prices since June 2022., 10.9%, 10.7% and 10.1%, respectively; Girona was the only state capital where prices fell 1.4%. On the other hand, the cities where prices increased the most in the last three months were Logrono (3.9%), Almeria (3.3%) and Valencia (3%).
Six communities above the recommended payment threshold
The number of provinces where citizens have to allocate more than 35 percent of their income to housing loans has increased from five to six: Balearic Islands (57.9%), Malaga (46.9%), Madrid (40.8%), Barcelona, Navarra and Cádiz. The Bank of Spain’s recommended level is 35%, and Spaniards allocate an average of 33% of their income. Effort by city reached 51.2% in Barcelona and 46.9% in Madrid. 45.8% in Malaga and 39.8% in Seville; Less than 35% are Valencia (34.9%) and Zaragoza (30.3%).
“The areas with the highest effort ratio, areas where demand and competition are most concentrated due to the area pushing prices up. Taken together, this attraction poles demand, either because of the dynamism of the labor market or because of its tourist attraction. The increasing weight of urban tourism, coastal tourism and second homes attracts investment demand and higher external income, making it more difficult for local households to access housing,” the Tinsa report concludes.