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.

Prices for new and resale housing in Spain rose by 6.2% year-on-year in January 2022 — this was reported by the valuation company Tinsa.

Prices in capitals and major cities increased by 5.2% compared to the first month of 2021, while on the Mediterranean coast they rose by 6.2%. On the islands, the increase was 7.3%, in suburban areas — 7%. In other municipalities — small towns in inland areas and the Atlantic coast — growth reached 7.6%.

Compared to December of last year, housing prices in the country increased by 0.7%. In capitals and major cities, the increase was 0.9%, on the islands — 0.6%, in suburban areas — 1.3%, in other municipalities — 0.9%. Meanwhile, on the Mediterranean coast, prices decreased by 0.1%.

“The dynamics of the residential real estate market indicate that demand remains active throughout the country,” stated Tinsa.

Cristina Arias, director of the appraiser’s research department, emphasized: “The housing segment continues to attract buyers amid low interest rates, which, combined with inflationary trends in the economy, keep real estate as an attractive investment alternative.”

Tinsa expects housing prices to continue showing moderate growth, as “supply still fails to keep up with growing demand.”

“New construction continues to recover at moderate rates,” noted Arias. “Growth is constrained, in particular, by rising construction costs, which continue to increase due to raw material prices, while labor costs remain stable for now.”