According to statistics, in 2022 Spain took a leading position among countries attracting foreign investors to their housing market. Real estate in Spain is chosen by foreigners for both moving to a permanent place of residence and as an investment. Let’s consider which property you should pay attention to and in which regions of the country it’s better to purchase real estate.
Content:
- The Spanish property market in 2022 in numbers
- What prices can you expect?
- The best new developments in Spain in 2022
- Conclusion: new developments in Spain and the prices
The Spanish property market in 2022 in numbers
Before proceeding to the study of commissioned properties, it’s advisable to understand the situation in the Spanish real estate market in 2022 and assess the prospects for the current period. Residential sales in 2022 in Spain were marked by record transaction volumes and continual price increases. Late spring and early summer were especially busy as buyers rushed to buy before the interest rates increased even further. Analysts predict that in 2023 there’ll be fewer transactions in the Spanish property market. After the approx. 600,000 transactions in 2022 (exact figures for the year have not yet been published), an approx. 550,000 transactions are expected in 2023. Experts note that this figure indicates a balanced market. The average increase in prices for apartments in Spain last year was 8%, although these figures are higher in several popular provinces. The trend of increasing prices will most likely continue in 2023, although maybe less intense. Therefore, it’s more profitable to invest in housing stock in real-time, without waiting for a further rise in price.
What prices can you expect?
As of 2023, the average price of a new house in Spain is about €249,400. In December 2022, the average price per square metre of a new house was €1921. In the country as a whole, one residential property costs an average of approx. €150,750. This price is maintained in most regions. Prices rose slightly and stabilised after falling amid the financial crisis of 2007, leading to the collapse of the local housing market and a sharp decline in the value of Spanish property.
The aforementioned crisis followed a long period during which house prices rose, creating a “bubble” effect in the market. When it burst, the local real estate market entered a recession from which it has only recently begun to recover. Despite the results achieved and according to the current EMF house price index, the Spanish property market is still lagging behind other European markets.
In terms of the cost of housing among the Spanish regions, Catalonia is in the lead, where the cost of an average square metre of housing is kept at the level of €4,104. Also in the top 3 most expensive regions are Madrid, and the Balearic Islands. The lowest prices are in Murcia, Estemadura, and Castile-La Mancha, where the average cost per square metre is €1299.
The best new developments in Spain in 2022
The rapid pace of construction that began after the pandemic in Spain opened up a wide range of opportunities for residential real estate buyers. Both central and resort regions and suburban areas are being actively built up. The properties for rent are united by original design, a variety of layouts, and increased attention to the environment. Below are a few developments successfully completed in 2022.
Sunset Cliffs
The new residential community is located in Benidorm, Alicante. The buildings are designed in a modern style, and apartments with a different number of bedrooms are available to buyers. You can choose between several layouts that differ depending on the floor. On the upper floors are the premium properties: penthouses with access to the solarium, and jacuzzi; with a gazebo and a lounge area overlooking the Mediterranean Sea. The community’s advantages include:
- A waterfront sea view - the distance to the beach is 80 metres.
- The community is located in an area with well-developed infrastructure. Within walking distance are all the necessary social facilities i.e., kindergartens, schools, and healthcare centres.
The cost of housing varies from €497,000 to €1,200,000.
Nereidas
The resort-type residential complex is located in Malaga, 100 metres from the sea and includes several buildings, with a smooth line of shapes similar to cruise ships. Residents have access to a well-maintained recreation area, a landscaped area, and a spacious swimming pool. The apartments are ready for occupation and are equipped with the necessary sanitary appliances in the bathrooms and household appliances in the kitchen. The cost of residences starts at €689,000.
Cody
The mid-rise building is located in the city of L'Hospitalet de Llobregat, in the province of Barcelona. The internal infrastructure of the residential complex provides a spa, a playground, a swimming pool, and parking for residents. Due to the affordable prices starting at €285,000, the apartments in the residential complex are attractive as an investment.
Bali
The residential community is located in Torrevieja and offers a limited collection of apartments. On the territory of the residential complex are a swimming pool, a landscaped garden, a recreation area, and a children's playground. A distinctive feature of the architecture of the building is the spacious terraces with access from each apartment. The cost of residences starts at €559,000.
Mirador Hills
The complex with unique bungalows and townhouses is located on the Costa Blanca in Alicante. Each house has a private swimming pool. The rooftop terraces have a lounge area with a solarium. The property prices start at €239,000.
Conclusion: new developments in Spain and the prices
The housing stock in Spain is quite diverse. New developments can be found in many cities of the country. The pricing policy is focused on the different budget levels, allowing you to plan a purchase depending on personal preferences. The cost of local real estate in the current year will tend to increase, making investing in housing potentially profitable. Foreign real estate can be available to buyers with any level of income. It’s sufficient to use the services of professional brokers who will help you to choose the best property, taking into account all your preferences.