The price of housing rose 6% year-on-year in Spain in March 2023. Growth slowed and remained stable compared to February’s data.
According to the quarterly figures, house prices in the first three months of 2023 were 6.4% higher than in the previous year. This is despite the fact that year-on-year growth is showing a “gradual slowdown” in all Spanish regions. This is according to figures from Spanish valuation firm Tinsa.
Determinants
‘The fall in household purchasing power, the increase in financing costs and the tightening of lending criteria are moderating demand,’ Cristina Arias, director of research at Tinsa, said, explaining the price moderation.
By region, metropolitan areas, major cities and capitals recorded the biggest price increases last month, with prices 8.2% and 6.1% higher than the previous year, respectively.
Recent stagnation
As with the overall index, the year-on-year price change in these regions has been contained by the stagnation in recent months, as the monthly change in March was less than 0.2% in both metropolitan areas, capital cities and major cities.
The smaller municipalities (+5.1%), islands (+4%) and cities on the Mediterranean coast (+2.7%) lagged behind in year-on-year price growth. In the latter region, house prices fell 0.6% in March compared to the previous month.
Also read: The price of housing in the Balearics is highest in Spain
