At a time when the world is plunged into an economic crisis, pushed by record inflation, the real estate market continues to be a «quiet bay», a safe asset for investors. This also highlights the profitability of real estate, which turned out to be «explosive» in the last financial year. Salamanca turned out to be one of the best regions of the country in this indicator.
According to the data of the College of Real Estate Inspectors of Spain, the capital of the province of Salamanca alone, back in September last year, showed an increase in real estate prices to 1,700 euros per square meter, which is 10.4% higher than in September 2021. Such growth is provided by extremely high demand from local and foreign buyers of real estate. This is the highest real estate price among the provinces of the autonomous community of Castile-Leon and the seventh in the country as a whole.
In the province in general, the average price per square meter at the beginning of the fourth quarter was about 1,310 euros, which is 16% more than the same period in 2021. This is despite the fact that the third quarter was the beginning of a global «cooling» of the real estate market not only in Spain, but in the world in general. The latter was due to the fact that a large number of investors and buyers postponed the terms of their transactions for the future, fearing a situation with rising mortgage interest rates. At the national level, the indicator of the province ranked second after Santa Cruz de Tenerife, which grew by 16.4% over the same period - to 2,088 euros.
It is necessary to note a noticeable difference between the dynamics of the development of local markets for new housing and housing from the secondary market. It was the latter that accounted for almost all transactions for the third quarter of the past year. The situation is more complicated with the demand for new housing, although prices by the beginning of the fourth quarter were at the level of 1,580 euros per square meter — an increase of 20.5% compared to the same period in 2021 and the second place in the ranking in Spain in general. This market was second only to new housing in Caceres, where the growth was 37%, although in absolute terms prices there were at the level of 1,380 euros.
The demand for secondary market housing in Salamanca is higher, but prices, at the same time, were at the level of 1,270 euros per square meter. This is 15.4% more than the results of 2021 for the same period. The fourth place in Spain in terms of relative growth, which is behind Almeria, Tenerife and Las Palmas de Gran Canaria - 16%, 17% and 15.7%, respectively.
However, by the end of the third quarter, the trend towards a slowdown in the market became obvious. So, in quarterly terms from the II to III quarters of 2022, the number of real estate transactions fell by 3.5%, and the average price fell by 6.5%.