The increase in the Euribor (the Euro Interbank Offered Rate) rate has not yet influenced the local real estate markets, including the market in Murcia. The economic performance of the housing market in the Autonomous Community of Murcia shows that it is coping well with the current crisis.
Due to a severe lack of available land for new construction and a high demand for new homes, prices are rising and market players’ profits are increasing. According to José Ramón Blázquez, the president of Association of Real Estate Developers of the Region of Murcia (APIRM), Murcia is the leader in the country with 82% of all new fixed rate mortgage loans.
In September 2022, the 12-month Euribor rate, the most widely used index in Spain for calculating the performance of the mortgage market, reached its highest level since January 2009. The average rate at the end of the month was 2.233%. Mortgage payments will rise dramatically as a result of this expansion, by an average of 2,400 euros a year. Back in August 2022, the Euribor rate was at 1.249%. Already in October, the figure had reached 2.55%.
In addition, the number of residential property sales transactions in the area increased by 9.3% year on year in August. This allowed Murcia to become the seventh community nationwide in this indicator. During that time, the average annual rate of growth in the country was 7.8%. House prices showed a double-digit increase as well, up to 18.9%. This is the second highest figure in Spain.
Even if the lack of available land for development has a positive effect on price rises and market revenues, this issue will continue to be quite problematic in the future. Developers consider different ways to resolve this situation. First of all, they try to work together with local authorities and ask the councils to speed up the processing of partial development plans.
Within the next 20 years, developers see a chance to urbanise the region. However, 12% more developers have permits for construction right now compared to 2021. New apartment complexes are still under development in the city’s northern region, between Juan Carlos I and Juan de Borbón streets. Additionally, in the coastal regions of Cartagena, Aguilas, San Javier, and San Pedro del Pinatara, housing demand and construction rates are recovering.
Big sale of real estate in Murcia, houses from 50,000 to 975,000 euros
A completely updated real estate offer was put up for sale during the 16th housing fair, “Reside 2022”, which took place at the NH Amistad hotel in Murcia from October 21 to 23. The prices of over 1,500 new homes and residences on the secondary market ranged from 50,000 euros to 975,000 euros.
This event was organised by Noved Eventos in partnership with Association of Real Estate Developers of the Region with the aim to consolidate the best market offers “under a single roof” in a situation of high consumer demand and low real estate supply.