In the period from April 2021 to April 2022, average house prices from the secondary market of Aragon increased by 3.52%. In real figures, a square meter of living space cost about 1,339 euros last month. On a monthly basis, prices rose by 1.01% from March to April.
The figures were provided in the monthly market report from the real estate portal Pisos.com.
In terms of residential real estate prices, Aragon has become the eighth (8) cheapest region in the country, in particular, behind the autonomous community of Extremadura (791 euros per sq.m.).
As for the secondary housing market in Spain, in general, in April 2022, the country recorded an increase in the average cost per square meter to 1,906 euros. Compared to March of this year, the growth is 0.72%, and in annual terms it reached 4.85%.
Returning to the monthly indicators of the provinces of Aragon. The province of Huesca showed the 5th largest price increase in Spain - 1.70%. Zaragoza maintained a stable growth of 0.51%. Teruel also took 3rd place in the country with a decrease of 2.68%.
In annual terms by April, all three provinces showed growth. The largest change in Aragon was demonstrated by the province of Zaragoza (+3.51%). It is worth noting that Teruel ranked fifth in Spain in terms of cheapness per square meter of living space. In April, a square meter cost 797 euros in the province.
On the other hand, Huesca and Zaragoza showed noticeably higher results - 1,203 euros and 1,436 euros per sq.m.
As for the capital cities of the Aragonese provinces, they all showed monthly growth. The city of Teruel showed the strongest growth in Aragon - 1.33%. The best result in annual growth was shown by the city of Zaragoza (4.43%).
At the same time, a correction was observed in Huesca and Teruel. Huesca took second place in Spain with a correction of -7.91%. Teruel fell more moderately - by 1.17%.
At a price of 1,230 euros per sq.m. in April 2022, Teruel ranks 7th in Spain in terms of housing affordability for buyers. Huesca is much more expensive - 1,698 euros per sq.m., and Zaragoza has become the most expensive in Aragon - 1,718 euros per sq.m.
Due to high energy prices, and some other factors, inflation in Spain is tending to record high levels. Naturally, such an increase in inflation is also evident in the housing market, although in a much more restrained form.
Ferrand Font, Director of Research at Pisos.com, indicates: «Although buying a home on the secondary market is more expensive today than a year earlier, these prices are still below the general price index, the consumer price index (CPI). Ultimately, the latter significantly affects the residential real estate sector, although this influence is weakening».
Font assumes: «With interest rates rising, fixed-rate loans will become increasingly popular even though initially it is a more expensive option to get financing».
Euribor [the average interest rate on interbank loans in the EU] has already returned to positive indicators in mid-April 2022, after it had been in the negative zone since 2016.
Many Spaniards still remember how the size of loan repayments at some point became impossibly high, which in turn led to an increase in the number of toxic debts for which there was no one to pay.
No one wants a repeat of this situation. Due to this, in recent years, the number of subrogations and innovations (reception. transfer of rights under obligations and renewal of credit contracts).