Spain’s residential property market has been buoyant in recent years, with nationwide house prices rising by 5.03% during 2022 (but falling slightly by 0.64% in real terms) 1. In this article, we will discuss the current trends and statistics of the Spanish property market, as well as the factors influencing the market.
Current Trends and Statistics
According to figures from the online property information site Idealista, Spanish house prices increased by 4.72% to €1,740 per square meter (sq. m) during the year to Q3 2022, following y-o-y increases of 5.55% in Q2 2022, 6.68% in Q1 2022, 4.43% in Q4 2021 and 2.59% in Q3 2021 1. However, when adjusted for inflation, house prices actually dropped 4.85% (globalpropertyguide.com). On a quarterly basis, house prices were almost unchanged in Q3 2022 (fell slightly by 1.21% when adjusted for inflation) 1.
By property type, existing dwellings saw prices rise by 7.8% y-o-y in Q3 2022 (-2% inflation-adjusted), following a 4.3% increase in Q3 2021. New dwellings saw prices rise by 6.8% in Q3 2022 from a year earlier (-3% inflation-adjusted), after rising by 4.1% in the previous year 1.
By autonomous regions, Cantabria saw the biggest y-o-y price growth in Q3 2022, at 9.3%, closely followed by Andalucia (8.3%), Baleares (8.3%), Canarias (8.1%), Cataluña (8.1%), La Rioja (8.1%), Ceuta (7.9%), País Vasco (7.8%), Madrid (7.6%) and Murcia (7.1%). More moderate house price increases were seen in Valencian Community (6.9%), Navarra (6.8%), Castilla y León (6.6%), Castilla – La Mancha (6.6%), Extremadura (6.5%), Asturias (6.4%), Aragón (6.2%), and Galicia (6.1%) 1.
Factors Influencing the Market
Several factors are influencing the Spanish property market. One of the most significant factors is the country’s economic growth. Spain’s economy has been growing steadily in recent years, which has led to an increase in demand for housing 2. Another factor is the country’s demographics. Spain has an aging population, which has led to an increase in demand for retirement homes and assisted living facilities 2.
The country’s political climate is also a factor. The Spanish government has implemented several policies to encourage foreign investment in the country’s property market, which has led to an increase in demand for housing (micasamo.com). Additionally, the country’s tourism industry has been growing steadily, which has led to an increase in demand for vacation homes 2.
Conclusion
The Spanish property market remains buoyant, with nationwide house prices rising by 5.03% during 2022. Several factors are influencing the market, including the country’s economic growth, demographics, political climate, and tourism industry. I hope this article has provided you with a comprehensive overview of the Spanish property market.
If you have any questions about buying or investing in Spanish properties, get in touch with me at: tomp@costadreamhome.com or by phone: 07575505565
