In the period from April to June, prices for primary and secondary real estate in Spain retained the dynamics observed during the previous two quarters. The average cost per square meter in the second quarter was 1,685 euros. It is up 2.4% quarter-on-quarter and 8.2% over the last 12 months.
In Salamanca, the average cost per square meter is 1,606 euros. The most expensive among the provinces of Castile and León has grown by 7% over the past 12 months. This is the highest rate in Spain. However, the current average cost of the country's primary and secondary real estate still has not broken the record reached in 2007.
In most provinces, the annual growth rate was between 3% and 7%. The best results (from 7% to 13.1%) were shown by Soria, Madrid and Zaragoza. The intensity of quarterly growth fluctuates between 1% and 2%.
The highest cost per square meter was recorded in Madrid (€2,811), the Balearic Islands (€2,592) and Gipuzkoa (€2,492). They are followed by Barcelona (€2,378) and Vizcaya (€2,279). On the opposite side of the scale are Ciudad Real (€716), Cuenca (€762) and Zamora (€805).
“We continue to see strong demand growth coupled with limited supply and higher prices, despite the fact that the market is currently showing a slight slowdown compared to the same period in 2021,” said Cristina Arias, director of research at Tinsa. In his opinion, the ECB's policy of raising interest rates to curb inflation means "an increase in the cost of new mortgages and, as a result, changes in the purchase intentions of Spanish households."
In addition, it cannot be ruled out that in the coming months, financial institutions will tighten lending criteria due to a slowdown in economic growth and a decrease in the purchasing power of the population. “A gradual increase in interest rates may lead to a decrease in demand for residential property, which will slow down price growth,” Cristina Arias says.