Prospects for the development of the housing market in Biscay in 2022

Prospects for the development of the housing market in Biscay in 2022

In 2021, the real estate market in Biscay was characterized by price stability. In 2022, the price increase may be less pronounced than expected by analysts for Spain as a whole, which they estimate at about 2% or 3%.

The cost of secondary housing in Biscay remained stable throughout 2021, in contrast to the 2-3% increase in prices for new real estate. Further price increases are forecast for 2022.

Since the beginning of the crisis, the price level for secondary housing in Biscay has remained unchanged. From 2,721 euros per square meter in March 2020, over the past year and a half they have not fallen below this price and reached a peak of EUR 2,763 per square meter only in September last year.

In November, the average house price in the province was EUR 2,735 per square meter, according to the report of Pisos.com, which represents a decrease of -0.30% compared to the same month in 2020 and, in general, a fairly stable behavior of prices for secondary real estate. Taking into account these data, Biscay continues to be the fifth most expensive province in Spain, behind the Balearic Islands (EUR 3,251 per square meter), Gipuzkoa (EUR 3,085 per square meter), Madrid (EUR 3,046 per square meter) and Barcelona (EUR 2,873 per square meter).

In Bilbao, where housing prices rose by 0.42% in November 2021 compared to the same month in 2020, the real estate market in 2021 was also characterized by price stability. The prices in the capital also reached their peak in September last year (EUR 3,415 per square meter), and yet compared to the prices that existed in March 2020, there was an increase of 3.27%.

In other municipalities of Biscay, interannual price fluctuations were much more dramatic, both due to price increases recorded in some cases, such as Arrigorriaga (14.92%) or Erandio (14.36%), and due to declines observed in other cities, such as Guenes (-8.99%) or Zalla (-8.51%).

The dynamics of real estate prices in Biscay and its capital contrasts with the more active growth in housing prices, with which, according to analysts, the year 2022 will end. According to CEO of Research at Pisos.com, it is predicted that the year will end with a growth of 2% to 3%.

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