2 Jan, 2023 @ 18:30
1 min read

New build property prices in Spain show biggest rise since 2007

Prices of new properties in Spain show biggest rise since 2007
Image by Schluesseldienst from Pixabay

NEW home prices in Spain last year produced a 7.1% annual rise- the biggest increase since 2007.

The Sociedad de Tasacion real estate appraisal company predicts price rises will continue during 2023 but it expects the rate to slow down due to the economic situation.

It said new builds were fetching an average €2,732 per m2 at the end of December but still below the historical high of €2,905 reached in June 2007.

The region showing the biggest new property price growth is the Balearic Islands(9.1%) followed by Madrid(8.5%), Navarra(7.2%), Andalucia(7.1%) and the Valencian Community(7%).

By capitals, Barcelona (€4,917 per m2) remained the most expensive, followed by Madrid(€4,125) and San Sebastian (€4,048).

Malaga took the honours as the regional capital where new housing prices had the highest percentage rise last year(9.3%).

Sociedad de Tasacion CEO, Juan Fernandez-Aceytuno, said: “The market behaviour towards the end of 2022 shows the impact of interest rate rises on real estate activity, but with new housing, even at the end of the year, there’s growth that is higher than or equal to that registered in 2019.”

Fernandez-Aceytuno believes that prices of second-hand homes may fall due to inflation, but sustained price growth will continue for new housing.

Meanwhile, real estate portal Fotocasa is estimating overall sales will fall by up to 12% this year after surpassing 600,000 transactions in 2022.

READ MORE:

Alex Trelinski

Alex worked for 30 years for the BBC as a presenter, producer and manager. He covered a variety of areas specialising in sport, news and politics. After moving to the Costa Blanca over a decade ago, he edited a newspaper for 5 years and worked on local radio.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

driving
Previous Story

New car sales in Spain plunge to nine-year low

lagar blanco montilla e
Next Story

Have a fino day out in Spain’s Cordoba

Latest from Lead

Go toTop