Home property sales in Spain rose by over 6% in 2022, but market cooled later in the year

HOME property sales grew by 6.1% during 2022 to reach 719,680 units- the biggest figure in 15 years- according to the General Council of Notaries.

Prices rose by 7.2% compared to 2021 with costs of €1,615 per m2.

The granting of new mortgages to buy a home rose by 2.8% year-on-year in 2022 but the Council noted that as last year progressed, higher interest rates and the economic situation impacted on the market.

There were substantial variations between the regions in property sales totals, with tourist-related areas getting the biggest boosts.

The increase reached double digits in the Canary Islands (26.9%) and the Valencian Community (14%).

Also of note were the rises in the Balearic Islands (7.4%); Asturias (6.6%); Murcia (6.6%); Aragon (5.9%); Catalunya (5.4%) and Andalucia (5.4%).

In contrast, home transactions fell in 2022 in Cantabria (-3.8%), Madrid (-1.1%) and La Rioja (-1%).

Despite Madrid being in the negative over sales, at accounted for the biggest price rises at 12.2% followed by Murcia (11%); the Canary Islands (10.4%) and the Valencian Community (10.3%).

In terms of the most wanted properties, the sale of flats increased by 7.8% to 548,631 deals, while single-family homes advanced by just 0.7% to 171,049 units.

New mortgage loans to acquire a home grew by 2.8% in 2022 to 355,470 operations and their average amount rose by 3.8% annually, standing at €153,357.

The Grand Council of Notaries say that one of the trends of last year was the progressive cooling of the housing market.

In fact, sales went from growing by 22.8% year-on-year in the first quarter of 2022 to falling by 10.6% in the fourth quarter, in a context marked by rising interest rates and the economic situation.

Prices went in the same direction, with increases moderating from 11% in the first quarter of the year down to 3.5% in the last quarter, and getting very close to zero in December.

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