The data of the Association of Real Estate Inspectors of Spain confirmed the already clearly observed trends. In the first quarter of this 2023, home sales fell by 2%. Although prices decreased by 1.5% from quarter to quarter, they increased by 4.9% year-on-year. Even with two quarters of price correction in the market, they still maintain positive relative indicators. This will continue to push the mass buyer away from the market and, sooner or later, will lead to a sharp drop in prices, since there will be no sellers left who will be able to further inflate prices.
Accumulated data over the past 12 months show that almost 643,000 home sales transactions have been concluded in the Spanish real estate market. This is the peak in transactions since 2007. The numbers are also significantly higher than the pre-pandemic results. In 2019, 520,000 transactions were recorded. Experts expect, however, that the volume of transactions will actively decrease this year and next, and the pressure on pricing will increase.
According to the Association, the average price in the first quarter of 2023 was about 1,920 euros per square meter. In the case of the secondary housing market, the average figure was about 1,870 euros per square meter, which turned out to be an increase of 5.4% in annual terms. New buildings have grown to an average of around 2,125 euros per square meter, a 3.8% increase over the same period. Inspectors indicate that new buildings represent every 2 out of 10 transactions on the market. Purchase agreements are sometimes concluded for 2 years in advance.
The autonomous communities with the highest average prices (euro/sq.m.) were as follows:
- Madrid (3,220);
- Balearic Islands (3,030);
- Baskonia (2,990);
- Catalonia (2,375);
- Canary Islands (2,170).
The provinces with the highest average prices were as follows:
- Gipuzkoa (3 365);
- Madrid (3,220);
- Balearic Islands (3,030);
- Vizcaya (2,860);
- Barcelona (2,705).
Among the provincial capitals are the following leaders:
- San Sebastian (5,130);
- Barcelona (4,355);
- Madrid (3,960);
- Palma (3,215);
- Bilbao (2,890).