Property prices in Spain back to pre-pandemic levels

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property prices

In the fourth quarter of 2021, property prices in Spain rose by 3.7% compared to the same period last year. The average price of a home is now 1,449 euros per m2. This is according to a recent report by the Spanish consultancy Gesvalt.

For a house with an average value and a surface area of ​​90 m2, you now pay €130,410 compared to €125,730 last year. The consultancy’s report also shows that property prices have risen in all quarters of the year. However, according to experts, this sustained increase will stabilise in 2022.

Biggest property price increase in the Balearic Islands

Property prices rose most in the Balearic Islands (5.4%), followed by the Canary Islands (4.1%) and the autonomous community of Madrid (3.5%). Furthermore, in Extremadura and La Rioja, prices increased by more than 3%.

In Galicia, on the other hand, the average house price fell by 0.4% in the last months of the year. House prices have also fallen in Aragon (0.5%). In the Asturias region, the price of a house has fallen the most (1.6%).

The most expensive houses in the Balearic Islands

In addition to the largest property price increase compared to last year, the Balearic Islands also lead the ranking of house prices by autonomous region. With an average home value of €2,412/m2, it surpasses Madrid, which has an average home value of €2,294/m2. The Basque Country takes third place in the ranking with an average house value of €2,259/m2. In the lower regions of the list are Castilla la Mancha (€872/m2) and Extremadura (€867/m2)). These are the only regions with property prices below €1,000 per m2.

Cogesa Expats

Irregular rents

About the rental housing market, Gesvalt observes an irregular development of rents in the fourth quarter of this year. The largest annual price increases are as follows: in Cuenca (+7.8%), Pontevedra (+6.9%), and Gerona (+5.8%). The largest price decreases are observed in Orense (-6.5%) and Jaén (-6.1%).

Also, no province has exceeded the limit of €16 per m2 per month during this period. The rent is highest in the province of Barcelona (€15.80/m2), followed by Guipúzcoa (€15.27/m2), Madrid (€14.62/m2) and the Balearic Islands (€13.23/m2). In Jaén, Zamora, Cáceres, Cuenca, and Teruel less people rent out their houses, and rents are considerably lower here at less than €5/m2 per month.

A similar trend is visible in the municipalities as in the provinces. The only municipalities where the average rent is higher than €16/m2 per month are Barcelona, ​​Madrid, and San Sebastián. Here the rent for an average house of 90 m2 is around €1600 per month. Municipalities with more than 50,000 inhabitants with the lowest rents are Elda, Alcoy, Lorca, Linares, Puertollano, and Ponferrada; here you pay less than €5/m2 per month for an average rental home.

Build new homes

In 2021 there will be an upward trend for the construction of new homes. For example, the number of building permits has increased by 26.1% and the number of delivery certificates has increased by 12.8% compared to 2020. In the Madrid region, most delivery certificates have been approved. After Madrid, the regions of Andalusia, Catalonia, and Valencia follow. In Andalucia, most building permits are registered, followed by Madrid, Catalonia, and Valencia.

Also read: House prices climb to highest in the past ten years

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