Record-high housing prices
According to the Q3 “Property Registration Statistics” published by the Association of Registrars, the average price of residential property in Spain continues to rise. By the end of the quarter, it reached €2,303/m2, up 2.3% quarter-on-quarter.
Resale home prices increased by 2.7% over the quarter to €2,275/m2, while new-build prices rose by 0.7% to €2,412/m2. In both cases, this is an all-time high.
In addition, the Resale Housing Price Index (IPVVR) reached a new record level, showing quarter-on-quarter growth of 3.4%. The result achieved is 26% higher than the 2007 peak.
Where housing is most expensive
Quarterly growth was recorded in 15 autonomous communities and 41 provinces. Among the autonomous communities, the highest average prices were seen in:
- Madrid (€4,112/m2),
- the Balearic Islands (€4,096/m2),
- the Basque Country (€3,274/m2),
- Catalonia (€2,775/m2).
As for provinces, the leaders were:
- Madrid (€4,112/m2),
- the Balearic Islands (€4,096/m2),
- Gipuzkoa (€3,818/m2),
- Barcelona (€3,159/m2),
- Biscay (€3,153/m2).
In turn, the provincial capitals with the most expensive housing were:
- San Sebastián (€5,962/m2),
- Madrid (€5,157/m2),
- Barcelona (€4,719/m2),
- Palma (€3,996/m2),
- Bilbao (€3,353/m2).
Home sales dynamics
The number of home purchase transactions increased by 1.9% quarter-on-quarter to 174,384, which is the second-best result since Q3 2007. Year-on-year growth stood at 4.7%.
Sales volumes:
- new homes (36,083) rose by 4.9% quarter-on-quarter and by 10.4% year-on-year,
- resale homes (138,301) – by 1.2% and 32.7%, respectively.
Over the past 12 months, 699,638 home purchase transactions were completed, which is 17.7% more than in the same period a year earlier. Of these, 548,521 (+15%) were for second-hand homes, and 151,117 (+29.1%) were for new builds.
Foreign demand for housing
On the other hand, foreign demand for housing in the third quarter slightly decreased both in percentage terms and in absolute terms. The share of home purchases by foreigners amounted to 13.6% (just under 23,700) – 14.1% higher than in the second quarter.
The most active buyers were:
- Britons (7.9%),
- Germans (6.5%),
- Dutch (6%),
- Romanians (5.6%),
- Moroccans (5.6%),
- French (5.2%),
- Italians (5%),
- Poles (4.6%).
By world regions:
- 57.7% came from the European Union,
- 18.3% – from the rest of Europe,
- 8.3% – from Africa,
- 6.5% – from Asia,
- 5.7% – from South America.
Quarterly growth in the share of home purchases by foreigners was recorded in eight autonomous communities. The highest figures were registered in:
- the Balearic Islands (29.5%),
- the Valencian Community (27%),
- the Canary Islands (25.3%),
- the Region of Murcia (21.9%).
Mortgages: the situation remains stable
The number of mortgage loans remains stable: 123,483 compared to 123,606 in the previous quarter. Relative to the total number of home purchase transactions, their share amounted to 70.8%.
Most often, buyers used mortgage financing in:
- Andalusia (24,194),
- Catalonia (21,878),
- the Community of Madrid (17,821),
- the Valencian Community (14,839).
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