Despite the various difficulties that the real estate market faced last year, including inflation and rising interest rates on lending, the sector has demonstrated and continues to demonstrate stability and even growth. According to experts, real estate and the construction sector remain an extremely important part of the Spanish economy.
New buildings remain one of the engines of the development of the real estate sector. According to some forecasts, the demand for such offers remains strong and will continue to resist economic challenges. At least in 2023 it will remain at the same level as in 2022. At the same time, prices will continue to rise.
Analyzing the market of residential new buildings, we can say that it continues to be one of the most popular among both ordinary home buyers and investors. David Chamas, general manager of Huspy in Spain, says about this: "In the coming months, demand will continue, remaining at the level of 2022".
However, there will be some changes in the structure of demand. The Spanish market is increasingly relying on foreigners, as the income level of the Spanish population no longer allows them to actively buy new real estate. In addition, foreigners themselves have different requests today than a few years ago. For example, environmental friendliness and energy efficiency of housing is becoming increasingly important for them.
Demand despite rising prices
Prices for new residential real estate continue to rise. The Sociedad de Tasación report indicates that the average price of new housing has increased by 7.1% over the past year and by December 2022 has already reached 2,730 euros per square meter. Of course, the growth is most pronounced in large cities, especially in the capital Madrid and Barcelona.
According to the latest report by Activum Real Estate Consulting, the price per square meter of new housing in Barcelona is 5,430 euros. The most prestigious area for the purchase of new housing is Eixample. The average price per square meter of a new building here is 8,070 euros at the end of 2022, which is 15% more than was recorded in December 2021.
The situation is similar in Madrid. Sociedad de Tasación reports that the capital is the city with the highest prices for new housing — an average of 4,125 euros per square meter as of December 2022. Madrid is second only to the previously mentioned Barcelona. In comparison with December 2021, in December last year, the price increase reached 8.5%. At the same time, the average growth rate in the country is 7.1% with a cost of 2,730 euros per square meter in the rhine.
The rise in prices is easily explained by the shortage of new housing in areas with high demand. Sergi Perez, head of Primary market analysis at Lucas Fox, points out in this regard: "This is due to the fact that not enough housing is being built in Spain to meet demand. There are several reasons, including an increase in the cost of building materials, labor prices, because of which developers have stopped many construction projects. At the same time, buyers often refuse to carry out the reconstruction of old housing, preferring instead to look for new and ready-to-move properties [which is often cheaper]".