According to a recent report from pisos.com, the gap between property prices and buyers’ expectations in Spain is growing. In 2018, the average price of properties for sale was 133,760 euros, while the average budget for buyers was 97,500. This is a difference of 36,260 euros and is 7,370 euros more than the gap seen in 2017.
Although the average price of Spanish property for sale fell by 5% compared to 2017, the gap has still grown. Ferran Font, director of studies at pisos.com, says “housing is less accessible due to the imbalance between prices which were moving upwards, and salaries which are either frozen or have not increased at the same pace. This directly affects the level of savings and debt capacity.” He also states that the growing gap should be a “wake-up call“, although he stresses that as the housing market is localised, it is possible to find markets where the gap is smaller.
Five autonomies saw buyers’ budgets reduced in 2018 (Aragón, Asturias, Castilla-La Mancha, Castilla y León and Extremadura), while two saw an increase (Canary Islands and Catalonia). The highest average buyer budgets were seen in the Basque Country with an average of 247,500 euros. The lowest budgets were seen in Murcia, Extremadura, Comunidad Valenciana, Castilla y León, Castilla-La Mancha and Aragón (67,500 euros on average). The autonomies where supply and demand were closer were Navarra (-4%), País Vasco (-1%) and Castilla-La Mancha (4%). The greatest imbalances occurred in Madrid (54%), the Canary Islands (53%), and the Balearic Islands (49%).
The amount of money that buyers are willing to invest fell in 14 provinces and increased in six. Guipuzcoans were the ones who offered the most: 277,500 euros on average. They were followed by buyers in Biscay (232,500 euros), the Balearic Islands (172,500 euros) and Alava (172,500 euros). The biggest differences between prices and offers were seen in Alicante (57%), Madrid (54%) and Santa Cruz de Tenerife (53%).