The latest data on the Spanish real estate market indicate a stabilization of the situation and a gradual movement towards a balance between supply and demand. The coming period for the market will be marked by the cessation of disorderly price growth, sharp falls and record volumes of real estate transactions, which will be expressed in the long-expected cooling of the market.
Information on the Spanish housing market at the end of 2022, provided by the Ministry of Transport, Mobility and Urban Development, demonstrates that the price per square meter of housing has begun to show a decline. For the first time since the beginning of COVID-19. The ministry's forecast indicates that in 2023 we should expect a drop in residential real estate prices by 2.5%. The key factors are predictable — inflation, falling incomes of the population and rising interest rates.
You can also refer to the information from RealAdvisor, according to which the price per square meter at the national level will show a steady quarterly decline to the indicators of 2022.
Prices by región
It is worth paying attention to the regional dynamics of the Spanish housing market. There is no single trend in the country and a large variety of development indicators is noticeable in local markets, both those that are already showing a decline and those that resist the current economic situation.
Many regions showed a noticeable annual increase in prices for 2022, while quarterly figures at the end of the year remained virtually unchanged. For example, in Madrid, the quarterly price increase was only 0.9%, and in Catalonia — 0.5%. To analyze the situation in the key regional markets of Spain, let's pay attention to Seville, Madrid and Barcelona.
According to the available information, the prices of residential real estate in these cities have stopped active growth and stabilized, so now they offer enough offers at excellent prices.
Average price level in Seville
Currently, in Seville, the average price for residential real estate is at the level of 250,000 euros. On closer examination, for the vast majority of objects, it varies from 66,000 euros to 995,000 euros. In this price window, the local market has stabilized. The spread is noticeable, but still pales with the indicators of Madrid and Barcelona.
On average, a square meter of living space in Seville will cost the buyer about 1,410 euros. But it is worth highlighting the segment of apartments, in which the average price of the object is at the level of 182,000 euros with a spread from 75,000 to 460,000 euros for each individual offer. This gives an average of 2,120 euros per square meter for the segment.
Average price level in Barcelona
In the capital of Catalonia, the average real estate price is currently 480,000 euros. At the same time, 80% of all objects on sale are in the price range from 100,000 euros to 2,600,000 euros. In view of this, the average price per square meter of living space is about 2,610 euros. We also note apartments in the segment where the average price is at the level of 329,000 euros with a range from 150,000 to 900,000 euros. In accordance with this, the cost per square meter is 4,040 euros.
Average price level in Madrid
The average price of residential real estate in Madrid is about 486,200 euros. Most of the objects for sale are in the range from 110,000 to 2,750,000 euros. Thus, the average price per square meter is at the level of about 2,450 euros. The average apartment price is 300,000 euros, with a range from 130,000 to 1,000,000 euros, and the price per square meter is approximately 3,950 euros.