this second hand house price In Spain, the average value per square meter was 1,934 euros, increasing by 2.2% in May compared to the same month of the previous year and by 0.7% since April. Fotocasa Real Estate Index.
Since November 2020, where it increased by 0.7%, Housing prices in Spain have been rising for a total of 19 consecutive months. According to the authors of Fotocasa statistics, the main reason for this increase is “the imbalance between supply and demand”. According to Fotocasa research director María Matos, “the market may be seeking equilibrium” in some regions.
The imbalance argument is reasonable, but the truth is that the number of home sales transactions reached According to the last year 565,523l National Institute of Statistics (INE), 34.6% more than in 2020. And in the industry, this figure is expected to reach 580,000 in 2022. As a result, and given the land constraints, the imbalance makes sense. experts from casavo, a digital trading platform, points to second-hand housing as the best alternative to deal with the lack of new construction. The increase in construction costs causes the pace of construction to stall, which in turn encourages prices to rise.
In the case of Barcelona, for example, Casavo points out that the number of new homes for sale fell 17.8% last year from 1,409 to 1,158 units. On the contrary, the number of homes for sale increased by about 7% as rental homes are now for sale.
In the real estate sector, after months of inactivity, the re-activation of demand that was blocked during the pandemic process is interpreted as leading to significant changes in the way people search for properties and conduct their operations. If new construction sales reach an annual growth of 39% by October 2021, in the case of Barcelona, the decline in the supply of new construction homes will force demand to be diverted to second-hand homes and increase renovations.
The direct effect is an increase in prices. According to Fotocasa’s data, 13 communities recorded monthly and annual price increases in May, highlighting the examples of Madrid and the Balearic Islands, where prices rose more than 5% (6.2% and 5.2%, respectively). ). In the case of the Balearic Islands, the square meter stands at an all-time high of 2,999 Euros. As a result, it is the second most expensive community for the Madrid region, after an average of 3,291 euros. Madrid and the Balearic Islands are followed by increases in Andalusia (3.1% yoy), Cantabria (2.2%) and Catalonia (2%). On the contrary, Castilla y León (-0.8%), Extremadura (-0.5%), Asturias (-0.5%) and Castilla-La Mancha (-0.3%) dropped their prices compared to last year.
Prices have also increased in 70% of Spanish provinces since May 2021. Increases are in Malaga (9.7%), Alicante (7%), Granada (6.8%) and Girona (6.2%). On the other hand, the first three-year decline corresponds to the provinces of Valencia (5.2%), Zamora (4.4%) and Palencia (2.5%). Price in 78% of provincial capitals (39 out of 50) has increased since May 2021, highlighting increases such as those registered in the city of Alicante, where the average house price was 10.8% above previous figures. year. It is followed by Zaragoza (8.9%), Pamplona (8%), Valencia (7.9%), San Sebastián (7.5%), Badajoz (7.3%) and Malaga (7.1%). San Sebastián recorded the most expensive home price in May at 5,937 euros per square metre. They are followed by Barcelona (4,314 Euros), Madrid (4,128) and Bilbao (3,400). On the other hand, the three capitals with the largest annual declines are Lugo (4.2%), Palencia (3.1%) and Tarragona (3%). Also, in May, Huelva was the cheapest capital, with an average price of 1,202 euros per square metre.