Rising Prices Make Buying New Buildings in Spain Challenging, Approaching Historical Highs



Buying new buildings in Spain has become increasingly difficult due to the rapid rise in prices, with experts noting that they are approaching historical highs last recorded during the real estate market boom in 2007.

A-2

Buying new buildings in Spain has become increasingly difficult due to the rapid rise in prices, with experts noting that they are approaching historical highs last recorded during the real estate market boom in 2007.

Rising Prices Make Buying New Buildings in Spain Challenging, Approaching Historical Highs | ogusyis

According to the latest report from the Appraisal Society, the price per square meter of new homes in Spain in the second quarter of this year reached €2809, surpassing the €2800 mark for the first time since 2008. Analysts predict that by the end of the year, prices could reach €2873 per square meter, coming close to the record €2905 per square meter recorded in 2007.

Regional Variations

The price increase has affected all provincial capitals, albeit with variations across regions. Málaga and Palma de Mallorca experienced the highest price increases, with an 8.2% rise over the past year. Barcelona holds the highest average price per square meter at €5000, followed by Madrid (€4269) and San Sebastián (€4185). These three capitals are the only ones in Spain where the average price per square meter exceeds €4000. On the other hand, Ciudad Real (€1286 per square meter), Caceres (€1293), and Badajoz (€1307) offer more affordable prices.

Reasons for Price Rise

Experts attribute the rise in new-build prices to a shortage of supply compared to the increasing demand. The end of the pandemic has led to a significant surge in real estate demand, with new buildings becoming particularly popular. Additionally, many individuals have managed to save enough money, which has further increased their interest in real estate as an investment.

Forecasts and Challenges

Although the price growth has been rapid, analysts predict a slowdown in this trend. The year is expected to end with a 5.2% price growth, reaching €2873 per square meter. However, several factors could impact demand, including economic instability and tighter financing conditions.

A-3

Furthermore, rising construction costs are adding further pressure on prices, leading to declining optimism within the construction sector.

Buying new buildings in Spain has become increasingly challenging due to the rapid rise in prices, which are approaching historical highs last seen in 2007. The shortage of supply compared to the rising demand, coupled with increased interest from investors, has contributed to the price surge. While analysts predict a slowdown in price growth, factors such as economic instability and rising construction costs pose challenges to the Spain real estate market.

Rising Prices Make Buying New Buildings in Spain Challenging, Approaching Historical Highs

Support Ogusyis by making a contribution – no matter how small.


Enter your amount
£
Enter your amount
£
Enter your amount
£
Yourname
Email
Phone

AD4


Portugal: Extra Taxes for Holiday Rental Property Owners

Property owners in Portugal face increased Municipal Tax on Onerous Property Transfers for turning homes into holiday rentals.

Property owners in Portugal face increased Municipal Tax on Onerous Property Transfers for turning homes into holiday rentals.

Read more

Rental Homes in Switzerland Drop 28% in 2 Years

Discover the latest findings from the Swiss Real Estate Association on the significant decrease in available rental properties in Switzerland over the past two years.

Discover the latest findings from the Swiss Real Estate Association on the significant decrease in available rental properties in Switzerland over the past two years.

Read more

Controlling personal finance and budgeting app

Australia: Unveiling Regional Queensland’s Lucrative Property Investment Potential

Explore why Regional Queensland stands out in the most promising real estate markets in Australia, offering high rental yields, affordability, and robust capital growth prospects.

Explore why Regional Queensland stands out in the most promising real estate markets in Australia, offering high rental yields, affordability, and robust capital growth prospects.

Read more

Real Estate Auction Sales Surge by 50% - Are Risks Worth the Rewards?

Discover why real estate investors are flocking to auctions, but heed the warning of a property solicitor to avoid costly mistakes.

Discover why real estate investors are flocking to auctions, but heed the warning of a property solicitor to avoid costly mistakes.

Read more

Buy Land & Vacant Lots on Easy Monthly Payment Plans

Potential Drop in Mortgage Rates in Spain Brings Good News for Homeowners

Stay informed on the latest developments as variable rate mortgage rates in Spain may soon see a decrease, offering relief to homeowners. Euribor at 3.503%.

Stay informed on the latest developments as variable rate mortgage rates in Spain may soon see a decrease, offering relief to homeowners. Euribor at 3.503%.

Read more

Foreigners Spend 39% More on Real Estate in Portugal Despite Recent Decline

Discover why foreigners are still investing in Portuguese property, even after the end of key residency and visa programs.

Discover why foreigners are still investing in Portuguese property, even after the end of key residency and visa programs.

Read more

Buy Land & Vacant Lots on Easy Monthly Payment Plans

Spain House Prices to Rise by Up to 3% by End of 2024

Stay informed on the latest trends in Spain real estate market as house prices are projected to increase by up to 3% by the close of 2024.

Stay informed on the latest trends in Spain real estate market as house prices are projected to increase by up to 3% by the close of 2024.

Read more

Netherlands Rental Housing Supply Dwindles as New Contract Rents Skyrocket

Discover the latest trends in the Netherlands rental market as supply decreases and rents for new contracts reach unprecedented heights.

Discover the latest trends in the Netherlands rental market as supply decreases and rents for new contracts reach unprecedented heights.

Read more

Portugal’s Housing Market Sees 18.7% Decline in Sales

Dive into the latest report by the National Statistics Institute revealing a sharp 18.7% drop in house sales in Portugal, hitting a low not seen since 2017.

Dive into the latest report by the National Statistics Institute revealing a sharp 18.7% drop in house sales in Portugal, hitting a low not seen since 2017.

Read more

Copyright © Ogusyis. All rights reserved. The Content may not be copied, distributed,  republished, uploaded, posted or transmitted in any way without the prior written consent of Ogusyis.