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18 de July de 2022
The islands have been the autonomous communities with the highest increases, with 6.7% in the Balearic Islands and 4.9% in the Canary Islands, both leading this statistic for the second consecutive quarter
At Gesvalt, we have published the Housing Report for Q2 2022. The study, carried out with our own data by the Research department, reflects an increase in house prices of 3.5% compared to the same period in 2021.
This new increase marks the fifth consecutive period with prices rising in excess of 3%, after four previous rises of 3.7% (two consecutive quarters), 3.9% and 3.3%. The company’s experts at Gesvalt continue to link this trend to the lower pandemic-related uncertainty and the response to the price declines in 2020. In addition to these factors, we must add the increase in the prices of construction materials and labour, as a result of the current inflationary scenario and the ECB’s rate hike. In this regard, Gesvalt experts are cautious before making predictions on how these factors may impact demand in the future and, therefore, on the market and price equilibrium, although, in general, they continue to expect prices to stabilise in the second half of the year.
After this new increase, the average house price stands at €1,474 per sq m, which means that, despite its recent trend, it is still 31.2% below the historical maximum achieved in Q1 2008. Thus, a home with an average value and 90 sq m floor area would be priced at €132,660, compared to €128,160 last year.
Furthermore, the Housing Report published by Gesvalt also points out that the upward trend in prices has been general, since it has occurred in all autonomous communities with the exception of Galicia and Aragón, which have experienced slight decreases of less than 1%. For the second consecutive quarter, the islands have once again led the ranking of autonomous communities with the highest increase in house prices, with 6.7% in the Balearic Islands and 4.9% in the Canaries. Within the peninsular territory, Castile-La Mancha has seen the highest increase, with 3.3%, followed by the Community of Madrid, with 3.2%, and the Community of Valencia, with 3.0%. Meanwhile, prices in Catalonia have grown by 2.6%.
While house prices keep growing above 3% for the fifth quarter in a row, Galicia also recorded five periods with house price falls. On this occasion, the fall was 0.8%, and was accompanied by Aragón, where it also fell by 0.5%.
On the other hand, the Balearic Islands remains the region with the highest house prices in the country, with an average value of €2,496 per sq m, while the Community of Madrid continues to rank second with €2,368 per sq m followed closely, once again, by the Basque Country, with €2,303 per sq m. The bottom part of the ranking also remains stable, with Extremadura at the bottom end, with an average house price of €851 per sq m, preceded by Castile-La Mancha with €889 per sq m. In addition, the Region of Murcia exceeds €1,000 per sq m for the first time in recent periods, with an average price of €1,014 per sq m, a similar price level as that reached in Castile and León (€1,016 per sq m).
Although rental prices have shown a more irregular growth in recent months, their upward trend has stabilised in the first months of 2022. In fact, in the second quarter of the year, the general rise in housing rents has placed Jaén as the only province to set its average price below €5 per sq m. Thus, the largest YoY rent rises were seen in Teruel (+12.8%), Malaga (+12.7%), Castellón (+12.4%), Alicante (+12.2%), Huelva (+10.6%) and Almería (+10.1%). On the other hand, the only three provinces where average rental prices dropped were Lérida (-4.3%), Granada (-1.8%), and Huesca (-1.5%).
In terms of total price, the province of Barcelona (€17.24 per sqm) once again ranks first in terms of highest prices, being the only one to exceed the €16 per sqm barrier and surpassing, for the first time in recent months, the €17 per sq m mark. Madrid is in second position (€15.48 per sq m), followed by Gipuzkoa (€14.67 per sq m) and the Balearic Islands (€14.11 per sq m).
At the municipal level, the rent trend has been similar to that at the provincial level. The only municipalities with rents above €15 per sq m are Barcelona, Madrid and San Sebastián, although for the second consecutive quarter Castelldefels has joined them with €15.53 per sq m and Marbella with €15.30 per sq m. In these locations, rental prices for an average 90 sq m home are around €1,600. In contrast, municipalities with population in excess of 50,000 with the lowest rents are Linares, Elda and Puertollano, with prices of less than €5 per sq m.
Gesvalt experts point out in this report that the rise in the Euribor rate has been faster than expected after reaching 0.287% following a month-on-month increase of 0.274% in May and 0.250% in April, when it recorded a positive figure for the first time since January 2016.
These increases will lead to a higher cost of money and mortgage credit, which, according to Gesvalt experts, may have a negative impact on the volume of property sales and purchases in H2 2022. In any case, the latter will depend on how high the Monetary Authority sets the price of money in the coming months, especially when justifying that this is a policy aimed at keeping price increases under control.