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Spanish Property Sales Continue to Accelerate

Prices are still rising, reaching 1,960€/m2 in June
Spanish property prices are still rising, reaching 1,960€/m2 in June

Prices rise again, reaching 1,960€/m² in June

The number of Spanish property transfers recorded in the public register in June reached 196,206, 0.9% more than in the same month last year.

In the case of property sales, the number was 108,085, an annual increase of 7.1%. 87.6% of the purchases registered in June correspond to urban property and 12.4% were rustic. In the case of urban sales, 61.3% were residential properties.

The number of sales of rustic properties decreased 11.3% in the annual rate in June, while that of urban properties increased 10.3%. Within the latter, home sales registered an annual increase of 18.8%.

16.9% of the homes transferred by sale in June are new property and 83.1% used. The number of operations on new homes rose by 7.1% compared to June 2021 and that of used homes by 21.5%.

Sales by Autonomous Communities

In the month of June, the total number of Spanish property transfers registered in the property registries per 100,000 inhabitants reached its highest values in Castilla y León (823), Aragón (802) and La Rioja (781).

The Balearic Islands (18.0%), the Canary Islands (15.2%) and Cantabria (15.1%) registered the highest annual variation rates, according to data released by the INE.

The Community of Madrid (–11.6%), the Basque Country (–7.9%) and the Community of Navarra (–7.8%) presented the lowest annual rates.

In terms of registered home sales, the communities with the highest number of transfers per 100,000 inhabitants are Valencia (222), Andalucía (185) and Murcia (184).

The autonomous communities that presented the greatest annual increases in the number of home sales in June were the Canary Islands (42.5%), Asturias (38.3%) and Cantabria (37.3%).

The only community with a negative variation rate is the community of Madrid (-6.3%).

Property Prices

The monthly variation in the price of second-hand housing rose by 1.2% and its interannual variation rose by 3.5%, placing the average price at 1,960 euros/m² in July, according to data from Fotocasa. This latest year-on-year value is the twenty-first chain increase (since November 2020) and the highest increase (3.5%) detected in this entire period.

The demand to Spanish property continues, at the moment very strong, while available stock has been gradually reducing after the great year in sales seen in 2021. This strong demand for housing, together with the reduction in stock, is pushing prices up. We have seen 21 consecutive months with year-on-year increases in the price of second-hand housing and, in fact, the increase in the month of July is the most pronounced in this period of time. It is true that the demand for housing to buy may begin to be reduced after the recent rise in interest rates and the consequent rise in mortgage prices and this may mean that prices do not continue to grow as much, since demand will be somewhat more restrained. This can mean that the price variations of some communities such as Madrid, the Balearic Islands or Andalusia, which are currently growing above 5%, begin to moderate and prices do not increase much more“, explained María Matos, Director of Studies and Spokesperson for Fotocasa.

Looking deeper at the prices of housing for sale compared to those of a year ago, we see that 12 communities increased the year-on-year price in July. In four communities prices exceeded 5% growth, specifically in the Balearic Islands prices increased 8.7%, and 6.5% in Madrid, in Navarra 5.8% and in Valencia 5.2%. They are followed by the communities of Andalusia with 3.9%, the Canary Islands with 3.8%, Catalonia with 2.9%, Aragón with 2.5%, Region of Murcia with 2.4%, La Rioja with 1.5%, Cantabria with 0.6% and the Basque Country with 0.5%. On the other hand, interannual decreases in July were detected in Castilla y León with -1.8%, Extremadura with -1.4%, Asturias with -0.8%, Castilla-La Mancha with -0.6% and Galicia with -0.4%.

Prices in Autonomous Communities

Regarding the ranking of Autonomous Communities by average prices per square metre, the most expensive second-hand housing prices in Spain are in Madrid and the Balearic Islands, with prices of 3,320 euros/m² and 3,094 euros/m², respectively. They are followed by the Basque Country with 2,897 euros/m², Catalonia with 2,617 euros/m², the Canary Islands with 1,848 euros/m², Cantabria with 1,755 euros/m², Andalusia with 1,749 euros/m², Navarra with 1,712 euros/m², Aragon with 1,629 euros. /m², Galicia with 1,607 euros/m², Asturias with 1,572 euros/m², Valencia with 1,499 euros/m², La Rioja with 1,462 euros/m², Castilla y León with 1,413 euros/m², Region of Murcia with 1,151 euros/m², Extremadura with 1,132 euros/m² and Castilla-La Mancha with 1,117 euros/m².