Spain’s housing market at highest level since property boom

by Lorraine Williamson
prices highest level since property boom

MADRID – In the fourth month of the year, 60,734 purchases were made and 32,192 mortgages were signed at a notary. The housing market continues to grow strongly. Furthermore, sales and mortgages remain at the highest level since the real estate boom. 

According to notaries, 60,734 sales were signed in the fourth month of the year, 15.5% more year on year. Furthermore, it is the best figure in April since 2007. In addition, 32,192 loans for house purchases were formalised. This is the best April since 2008, and with an increase of 14.7% compared to last year. 

Highest level since boom

By home type, apartment sales rose above average, up 16.5% year-on-year to 46,377 units. Single-family homes increased by 12.4% compared to April 2021, with 14,357 units. 

Rise everywhere in Spain, except in Murcia 

The revival in transactions was seen across Spain, except in Murcia, where purchases and sales fell 2% year-on-year in April. 

On the other hand, the main increases were recorded in;

  • Navarre (50.4%)
  • Canary Islands (45.5%)
  • Cantabria (29.3%)
  • Balearic Islands (22.9%)
  • Andalucia (22%)
  • Valencian Community (21.5%)
  • Castilla y León (17.9%). 

Related post: Madness at the housing market in the province of Málaga and Costa del Sol 

Below the national average, but with double-digit increases, were Castilla-La Mancha, Catalonia, Asturias, Aragon, and Extremadura. 

Mortgages 

In the field of mortgages, Murcia is again the red lantern and becomes the only region where the number of mortgage signatures for the purchase of a house has decreased (-4.4%). 

In contrast, 11 regions grew by double digits, with Cantabria (35.8%), Castilla y León (31.6%), Canary Islands (28.1%), Andalucia (24.8%), Navarra (23%). and Catalonia (20.2%) at the forefront of the increases. 

nederlandse orthopeed

According to notaries, the average amount of mortgages decreased by 1.3% on an annual basis to 147,693 euros. It grew in nine communities and declined in the remaining eight. The most striking figures for April were recorded in Andalucia (9.9%), Castilla y León (8.3%), Galicia (7.7%) and Aragón (6.2%), while the Balearic Islands (- 14.7%) and Extremadura (-14.5%) led the fall. 

The data from the civil-law notaries shows that the percentage of home purchases financed with a mortgage loan was 53%. In addition, in this type of purchase with financing, the amount of the loan represented 73.5% of the price on average. 

Prices have risen sharply 

The average price per m2 of homes sold in April amounted to €1,575, which translates into an increase of 6.5% on an annual basis. However, this amount is lower than the amount recorded in March and the 2011 maximum marked in January, after remaining on the brink of €1,600/m2. 

By type of home, apartments became 3.6% more expensive compared to the same month of the previous year, to €1,749/m2, while the price of single-family homes was €1,283/m2, an increase of 13.5%. 

Price increase per region 

By region, the price increase has been consolidated in almost the entire national territory, except Castilla-La Mancha (-11.5%) and Navarra (-1.8%). On the other hand, it has increased by double digits in Andalucia (18.3%), Murcia (13.1%), the Valencian Community (13.1%), Galicia (12.8%), Madrid (11.1 %), and the Balearic Islands (10.2%). 

The remaining nine communities have also recorded an increase in prices, albeit more moderately. 

Also read: Euribor rate means increase in mortgage payments

 

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