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Spain House Prices Rise 3.7%, Reaching Pre-Pandemic Levels

10 de January de 2022

With this increase, the average house price stands at € 1,449 / m² –after registering YoY rises in the four quarters of the year– and points towards stabilisation in 2022

Spain House Prices Rise 3.7%, Reaching Pre-Pandemic Levels

Gesvalt has published its Housing Market Report for Q4 2021. In the study, carried out with own data developed by the company’s Research department, a new increase is recorded in the average house price, now reaching 3.7 % compared to the same period in 2020. This situation would imply that the house price has risen in each quarter of 2021, maintaining an upward trend that –according to Gesvalt experts– will stabilise in 2022.

After this new increase, the average house price stands at € 1,449 / m², that is, the price of a house with 90 m² floor area would amount to € 130,410, compared to € 125,730 achieved last year.

As in the previous quarter, most of the autonomous communities have seen increases, with fourteen of them recording higher average house prices in the fourth quarter compared to the previous year. In this sense, the regions with the highest price rises are the Balearic Islands (+5.4%), the Canary Islands (+4.1%) and the Community of Madrid (+3.4%). Likewise, it should be noted that house prices in Extremadura and La Rioja rose in excess of 3.0%.

Galicia Sees Three Consecutive Quarters of Decline

As in the two previous quarters, the average house price in Galicia declined by 0.4% in Q4 2021. On this occasion, unlike the previous quarter, it was accompanied by Aragón (-0.5%) and Asturias, which, with a 1.6% decline, was the region where house prices fell the most.

On the other hand, the Balearic Islands, in addition to registering the highest YoY increase, ranks first again in terms of price level by autonomous community, with an average value of € 2,415 / m², surpassing Madrid, which stands at an average € 2,294 / m². The third position is occupied by the Basque Country, which this quarter reached a value of € 2,259 / m². At the bottom of the ranking is Extremadura, with a value of € 867 / m², followed by Castile-La Mancha with € 872 / m², these being the only communities with unit prices less than a thousand euro per square metre.

Rental Prices Remain Irregular

Rental prices continue to show an irregular trend as in the previous two quarters. In this sense, the largest YoY increases in rental prices were seen in Cuenca (+ 7.8%), Pontevedra (+ 6.9%) and Gerona (+ 5.8%). On the contrary, the greatest declines were seen in Orense (-6.5%) and Jaén (-6.1%).

Likewise, in the last quarter no province broke the € 16 / m² / month barrier, with Barcelona (€ 15.80 / m² / month) being the province with the highest price, followed by Guipúzcoa in second position (€ 15.27 / m² / month), Madrid (€ 14.65 / m² / month) and the Balearic Islands (€ 13.23 / m² / month). On the contrary, the provinces where people are less inclined to rent a home and, therefore, rents are lower, are Jaén, Zamora, Cáceres, Cuenca and Teruel, all of them with monthly rental prices below € 5 / m².

Putting the spotlight on municipalities, the trend is similar to that observed in provinces. The only cities with monthly rents above € 16 / m² are still Barcelona, ​​Madrid and San Sebastián, where average rental prices of 90 m² houses are around € 1,600. In contrast, towns with more than 50,000 inhabitants with the cheapest housing rents are Elda, Alcoy, Lorca, Linares, Puertollano and Ponferrada, with less than € 5 / m² / month.

RE Developers Continue to Strive to Meet the Housing Demand

In the first nine months of the year, it was clearly observed that real estate developers made a great effort to be able to place on the market a sufficient number of homes to meet the current demand for housing. In fact, during this period, the number of completion certificates and construction management approvals for residential projects strongly increased compared to last year, which can be considered normal given the exceptional situation experienced in March, April and May 2020. In this way, construction management approvals increased by 26.1%, while completion certificates rose by 12.8%. The communities with the highest number of certifications approved continue to be the Community of Madrid, Andalusia, Catalonia and the Valencian Community, while Andalusia overtook Madrid in the ranking of construction management approvals.