The rise in interest rates and the accompanying increase in mortgage prices, driven by persistent inflation, affect all autonomous communities during a period of steady growth in housing loan activity secured against real estate. Within this trend, Andalusia, Catalonia and Madrid account for a significant share of new loans.
Spain recorded activity during the first seven months of the year based on data from the National Institute of Statistics, with 272,373 residential mortgages registered. This represents a 14.78% rise compared with the pre-pandemic period of the previous year and a 19.51% increase compared with the same months in 2019.
Only 24.6% of total mortgages were established at a variable rate, which is five percentage points lower than last January, according to INE data for July. These variable-rate loans are the ones most exposed to any future rate hikes and potential adjustments to monthly payments.
Increased 40% in three years
The revival of the real estate market and the subsequent rise in housing prices in recent years have driven the total indebtedness from these mortgages higher by 39,534 million euros. This marks a 23.22% increase compared with the first seven months of 2021 and a 40.55% rise versus the same period in 2019 before the pandemic, highlighting a substantial expansion in leverage within the housing sector.
Over the last five years, when comparing 2017 to the present, the number of mortgages signed for home purchases grew by 47.18%, and the total amounts financed climbed by 84.38%. The increases were particularly pronounced in Castilla-La Mancha (mortgages up 73.73% and total amounts up 104.65%), Murcia (69.31% and 98.24%), La Rioja (68% and 99.25%), Cantabria (66.84% and 94.19%), and Catalonia (59.23% and 95.66%).
On the other hand, the smallest gains appeared in the Balearic Islands (mortgages up 6.06% and total amounts up 59.27%), the Canary Islands (14.27% and 56.97%), Navarre (21.12% and 49.41%), the Basque Country (35.47% and 64.16%), Asturias (35.63% and 59.18%), and Aragon (39.30% and 59.11%), where growth has been more modest.
More mortgages in Andalusia, higher amounts in Madrid
In the first seven months of the year, Andalusia led with the most residential mortgages, totaling 52,625 loans (17.96% of the national total). Catalonia followed with 47,955 (16.19%), Madrid with 46,497 (17.07%), and the Valencian Community with 30,569 (10.69%), while the Basque Country reached 13,696 (4.59%).
When looking at the value of these loans, Madrid recorded the highest financed amount at 9,934.38 million euros (25.3% of the national total), followed by Catalonia at 8,234.92 million (20.83%). Andalusia accounted for 6,536.46 million (16.53%), the Valencian Community for 3,167.67 million (8.01%), and the Basque Country for 2,185.58 million (5.53%).
Per capita, Madrid led with the most mortgages signed per 10,000 inhabitants (69), followed by Rioja (65), the Basque Country (63), Catalonia and Andalusia (both 62), and the Valencian Community and Cantabria (60), all above the national average. By contrast, Galicia registered 34 per 100,000 people, the Canary Islands 40, Extremadura 44, Navarra 45, Asturias and Castile and León 47, Murcia 53, the Balearic Islands 54, Castile-La Mancha 55, and Aragon 56 per 100,000 people.
In terms of the average mortgage amount, the Balearic Islands reported the highest figure at 226,261 euros, followed by Madrid (213,656), Catalonia (171,722), and the Basque Country (159,579). Regions with comparatively lower averages included Extremadura (84,814), Murcia (90,488), La Rioja (101,058), and Castile-La Mancha (101,210 euros).
The forthcoming figures summarize the number of housing mortgages by autonomous community for the first seven months of the year, along with their share of the national total, rate per 10,000 inhabitants, the subscribed amount in euros, and the percentage and average value of the total. The presented data illuminate regional patterns in mortgage activity and financing levels across the country.
Mortgage Amount
% of total per 10,000 people from January to July 2022. % of January-July 2022 total Average
Andalusia 52,625 19.32 62 6,536.46 16.53 124,208
Aragon 7,305 2.68 56 845.71 2.14 115,772
Asturias 4,732 1.74 47 511.88 1.29 108,175
Balearic Islands 6,579 2.42 54 1,488.57 3.77 226,261
Canary Islands 8,937 3.28 40 1,007.34 2.55 112,716
Cantabria 3,497 1.28 60 411.52 1.04 117,680
C and Leon 11,287 4.14 47 1,185.84 3.00 105,063
C.-La Mancha 11,270 4.14 55 1,140.63 2.89 101,210
Catalonia 47,955 17.61 62 8,234.92 20.83 171,722
Valencia C. 30,569 11.22 60 3,167.67 8.01 103,624
Extremadura 4,616 1.69 44 391.50 0.99 84,814
Galicia 9,275 3.41 34 1,101.25 2.79 118,734
Madrid 46,497 17.07 69 9,934.38 25.13 213,656
Murcia 7,995 2.94 53 723.45 1.83 90,488
Navarre 2,959 1.09 45 387.76 0.98 131,046
Basque Country 13,696 5.03 63 2,185.58 5.53 159,579
Rioja, The 2,062 0.76 65 208.38 0.53 101,058
Ceuta 214 0.08 26 28.19 0.07 131,729
Melilla 303 0.11 36 42.91 0.11 141,627
Total 272,373 100.00 57 39,534.02 100.00 145,147