Property Market News — Prices, Laws and Trends

A review of the latest property market news. Here you will find articles about prices, regions, legal matters and tips for overseas property buyers.

Rental prices in Spain decreased by 4.2% year-on-year in November 2021

Rental prices in Spain decreased by 4.2% year-on-year in November 2021 The cost of housing rentals in Spain decreased by 4.2% year-on-year, reaching 10.19 euros/m² per month in November 2021, although it increased by 1% compared to the previous month, according to the Fotocasa real estate index. This marks the tenth consecutive year-on-year decline starting from February 2021. Market Analysis María Matos, director of the analytical department at Fotocasa, explained the reasons for the decline: “The downward trend in rental prices is a direct consequence of market transformation under the impact of the pandemic, when rental demand decreased by several percent.”

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Rental Prices Fell 6.1% in October, the Largest Drop in 10 Years

Rental Prices Fell 6.1% in October, the Largest Drop in 10 Years In Spain, rental housing costs decreased by 0.5% compared to the previous month and by 6.1% year-on-year in October, reaching 10.09 euros/m² per month. The annual drop in rental prices (-6.1%) was the most significant in 10 years — since November 2011 (-6.4%), according to the Fotocasa real estate index. “The downward trend in the rental market continues; this drop is a direct consequence of the market transformation after the pandemic, when rental demand decreased by several percentage points due to remote work and students returning to their home provinces; simultaneously, housing supply that was frozen is gradually entering the market, which additionally pressures prices,” explains María Matos, director of the analytical department and spokesperson for Fotocasa.

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Real Estate Market Trends in Spain in 2022

Real Estate Market Trends in Spain in 2022 Below is a detailed analysis of macro- and microeconomic factors that will affect prices in the Spanish real estate market. Experts from VirtoProperty agency provide a price forecast for 2022. Now let’s talk about several trends that indirectly impact the market — through changes in consumer mindset and habits. Two pandemic years have changed us more than we can realize. What has remote work format led to?

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Rationalism: The Style that Brought Barcelona to Modernity

Rationalism: The Style that Brought Barcelona to Modernity The capital of Catalonia seeks to recover rationalist architecture—a style that took firm root in the city and positioned Barcelona alongside the major European capitals. Ninety years ago, Barcelona joined the architectural avant-garde. Rationalism established itself with great force during the years of the Second Republic thanks to a group of young people who sought to change the world through construction, with support from the Group of Catalan Architects and Technicians for the Progress of Contemporary Architecture (Gatcpac). Among its most prominent members were Josep Lluís Sert, Francesc Fàbregas, Ricardo de Churruca, Germán Rodríguez Arias, and Josep Torres Clavé; the organization spread throughout Spain under the abbreviation Gatepac.

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Property Tax in Spain — Cities with the Highest and Lowest IBI Rates

Property Tax in Spain — Cities with the Highest and Lowest IBI Rates Among Spain’s provincial capitals in 2022, there are significant differences in property tax IBI (Impuesto sobre Bienes Inmuebles) rates. The three capitals with the lowest rates — Santander, Zaragoza, and Madrid — continue to reduce them. Provincial Capitals with the Highest Rates Three Catalonian cities occupy the top positions: Lérida (0.967%), Tarragona (0.953%), and Girona (0.932%). When calculated for a property worth 80,000 euros, taxpayers in Lérida pay 774 euros per year. Melilla (0.800%) and Ciudad Real (0.790%) are also among the leaders in terms of rate magnitude.

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Property Rental in Spain: Declining Profitability and Rising Defaults

Property Rental in Spain: Declining Profitability and Rising Defaults The pandemic has seriously destabilized Spain’s rental market, creating challenging conditions for property owners. Rental yields have dropped 30% since 2018, reaching 4.5% for new housing and 6% for resale properties. Downward Trend The “Rental Profitability 2021” report showed that rental rates grew slower than purchase prices, leading to widespread yield compression. This is particularly acute in the new housing segment. Madrid and Barcelona show divergent dynamics: rental yields for new housing in Madrid fell 33% since 2018, while in Barcelona the decline was 14%.

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Property Prices for New and Resale Housing in Spain Rose by 6.2% in January

Property Prices for New and Resale Housing in Spain Rose by 6.2% in January Rental housing prices in Spain decreased by 4.2% year-on-year, reaching 10.19 euros/m² per month in November. However, compared to the previous month, they increased by 1%. This data is based on the Fotocasa real estate index, which also indicates that the latest recorded annual decline (-4.2%) was the tenth consecutive drop, starting from February 2021.

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Number of Mansions and Hotels at Auctions Has Increased

Number of Mansions and Hotels at Auctions Has Increased The difficult situation in the hotel and restaurant business has particularly hard hit companies focused on organizing events. Many of these properties are put up for sale, and their number is especially large in Barcelona, where purchasing has become a way to acquire hotel properties whose reopening is impossible due to municipal restrictions.

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New Housing Law Puts Rental Property Investments at Risk

New Housing Law Puts Rental Property Investments at Risk The Spanish government’s new housing law has caused serious concern among real estate investors. The regulation could jeopardize more than a third of new rental housing supply planned for the next five years. While the industry questions whether the regulation will be applied in practice, the mere announcement has scared away major funds and insurance companies with ambitious investment plans in Spain. Industry sources warn of confusion and legal uncertainty caused by what they consider “electoral and discriminatory measures.” One of the complaints heard: “Spain is the only country in Europe that discriminates against property owners.”

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Mortgages in Spain: average amount — around €220,000 in the Balearic Islands and only €82,000 in Murcia

Mortgages in Spain: average amount — around €220,000 in the Balearic Islands and only €82,000 in Murcia The average mortgage amount for home purchases approaches €220,000 in the Balearic Islands and reaches €203,000 in Madrid. In Murcia it amounts to around €82,000, in Extremadura it falls short of €87,000, and in La Rioja it barely exceeds €91,000. Data published by the National Statistics Institute (INE) for August reveals significant regional differences in average mortgage amounts, driven by territorial diversity in the real estate market.

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Malaga City Centre Falls Behind in Pace of Property Market Recovery

Malaga City Centre Falls Behind in Pace of Property Market Recovery The property sales market has returned to the Costa del Sol capital, but while some areas are showing price growth, Malaga’s historic centre is lagging behind the overall dynamics. Housing in the provincial capital has increased in price by 6.3% compared to the previous year, according to the latest Tinsa report, which includes data on new and resale properties. This is one of the most significant increases at the national level. Nevertheless, the city centre shows the largest decline - by 2.7%.

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Luxury destinations gain popularity in Sotogrande and Alcaidesa on Costa del Sol

Luxury destinations gain popularity in Sotogrande and Alcaidesa on Costa del Sol The municipality of San Roque, where the Sotogrande residential complex is located, is experiencing a new wave of interest from a new type of owner who buys property to enjoy it year-round. Sotogrande S.A. has already sold 6 of the most exclusive villas in the La Reserva residential complex. Socimi Millenium is repositioning the Alcaidesa area, where it acquired two golf courses, and is developing a new La Hacienda project. A month ago, Accor opened SO/Sotogrande — its first hotel in Spain and first resort in Europe. The Azotea gastronomic group, known for its rooftop terraces, opened the “Sal Verde” restaurant on San Roque beach last summer.

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