Father Fernando and son Fernando observe the work of a huge building under construction on Aguas Vivas street in Guadalajara, in the north of the city. Up to seven cranes can be seen around this sprawling area, which is punctuated by avenues and green spaces and has become the paradigm of the phenomenon experienced by Castilla-La Mancha’s second most populous city (87,452 inhabitants). “My daughter bought the apartment next door about two years ago. The three-bedroom one costs 200,000 euros. Now my son got one from the new promotion. Same square metres, same architect, same qualifications, with pools… and it will cost you 20,000 euros more. “Enough is enough,” cries the father.
“For a year and a half, housing prices in Guadalajara have been crazy,” admits Sergio Andrés, president of real estate agency Inmoguada. According to the latest data published by appraiser Tinsa, in fact, Guadalajara was the state capital where houses gained the most value last year (+12.2% from September to September) surpassed only by Almería (+12.8%). This trend can spread throughout the community; Guadalajara (+12%) is in the top 2 in real estate price growth, behind Córdoba (+12.3%) and ahead of Castellón (+10.8%).
“We don’t have a shortage of jobs. We have a pretty good sales average. And not only in the capital. The rural problem has become stronger with the epidemic. Many people prefer to go to cities, to detached houses. Chiloeches, Tendilla, Sacelón… We opened a new office in Tórtola de Henares and in two and a half months we have already sold ten houses,” says real estate agent Andrés, who, like other industry experts, agrees on this issue. La Mancha: The proximity of Madrid – the capital It is only 42 minutes by car from the center – the creation of jobs in nearby municipalities, especially in logistics, which has led to migration movements towards the province, and the price is much cheaper than in Madrid.
Madrid customers
According to Tinsa, 1,583 euros per square meter in the capital of Caracas (1,316 euros per m2 on average in the area), a similar price to Madrid towns like Parla (1,598) or Navalcarnero (1,597), but far from the southern region like Móstoles (1,932) or Fuenlabrada (1,868). or Alcalá de Henares (1988). “We get a lot of customers from Madrid who can buy much cheaper. It passes around all major cities; As a result, nearby municipalities are also seeing housing prices increase,” says Marta Aragonés, president of Alcarria Real Estate. “You can still buy flats here for 110,000 or 120,000 euros, and many buy them without a mortgage. The problem is that in Madrid they don’t do anything with that money. “That flat is being renovated and you rent it out in a short time,” he expresses a frequently repeated truth. Small investors, driven out of Madrid by high prices, are buying up as a way to make a profit in the medium term.
Prices increased by double digits
According to Fragua by Atlas Real Estate, the average cost of renting a house now reaches 800 euros, compared to less than 650 euros paid in January 2015. Euros per square meter increased from five euros per month to 7.8. 56 percent increase in the last eight yearsAccording to Brains Real Estate. There were also increases at the provincial level, but more modest. In the same period, rents increased by around 40 percent.
“In Living Waters [la zona de nueva construcción] There has been a tremendous increase in rents,” admits a merchant. In front of the Guadalajara City Hall, located on the pedestrian street Calle Mayor, there are various signs advertising properties for sale. “Many blocks in this area are for rent,” said Paco López of the Bravo López Gestión real estate agency. “But in this case these were small flats,” he confirms, confirming that the increase in both purchase and rental prices is not speculative.
This is due to both the increase in construction material prices and There is much more demand for housing from workers on industrial estates in towns in the region and from those coming from Madrid, comes to live here because it is cheaper and commutes to the capital every day to work. You can do this both by car (traffic jams remain on the A-2) and by Cercanías: Atocha can be reached in one hour and ten minutes.
“Rents here have gone crazy. “They demand 650 to 800 euros a month for two-bedroom apartments, while the average salary of someone working in logistics is 1,400,” says the expert, noting that although there is still free land for construction: New Zoning Plan will be implemented this unlocks more land, but it will still take years to reach.
Ángel, a construction worker, says: “My brother-in-law has a rented house and he started with 400 euros, now he has 850 euros and the house is not new. It is already 14-15 years old.” “I work all over Spain and everywhere it is outrageous that housing is increasing so much, but here it is still affordable even though it has increased so much. Our daughter bought a new three-bedroom apartment of 130 square meters for 250,000 euros. The value of that apartment in Madrid is twice or so.” there would be more. This is still Madrid’s home city”.
Guadalajara has been experiencing this trend for several years, although the big increase was last year. This figure is similar to national statistics published by INE, although around 13.5% of homes are vacant. average prices increased from 166,000 euros in January 2015 to over 225,000 euros in 2023According to data received from the Fragua by Atlas Real Estate platform.
Euros per square metre, data provided by the College of Registrars and compiled by Brains Real Estate. Gained 32% value since 2014. At the provincial level, the increases are almost the same or even slightly higher. All of these increases are occurring in an environment where there is barely publicity in the municipality of Guadalajara. since 2012, More than 300 houses were delivered in 2018 alone. That figure has doubled at the state level, but those are also ridiculous numbers relative to what was built during the bubble and also in the ’80s and ’90s. Without going any further, almost 15,000 properties have been surrendered in the state of Guadalajara. It could not reach 600 between 2007-2008 and 2015-2016.
wide streets
Right now, The only growing sector is Aguas Vivas. The urbanizations, which in most cases consist of five- and six-storey blocks with swimming pools, surround a large area of wide streets. With a huge landscaped and tree-lined median with hospitality terraces and benches for sitting, Clara Campoamor Boulevard has nothing to envy the new residential areas of, say, Alcobendas or Boadilla del Monte. There are shops here, hairdressers, a gym, many restaurants… This is where life is, but neighbors complain that there are “no services” beyond that.
“To be honest, this area is very good, so there is nothing to rent,” admits businessman Germán, who confirms that many people from Madrid come to live here. “For example, a lot of healthcare workers from Cuenca came to work at the hospital and they are buying houses here,” says Fernando Jr., a police officer who explains that several of the new apartment blocks will be for rent, with some public protection. “People from Alcalá also came here and will soon establish the GEO base there.” [pegada a la CM-10]. You will see…”.