The residential real estate market of Burgas has entered a negative trend. According to local market experts, home purchase prices have fallen by more than 3% over the past year. At the same time, residential real estate rental rates have maintained growth. At the end of 2022, it was 5%.
The situation in Burgas is a clear illustration of the general dynamics of the market. With an extreme rise in real estate prices and mortgage rates, the broad consumer base is cut off from the market and forced to look for alternatives. In view of this, there is a shift in demand in the market.
According to the report of the Idealista real estate portal, the largest in Spain, the price per square meter of residential real estate in Burgos was 1,149 euros at the end of December last year. This represents a 3.2% year-on-year drop. The main decline occurred in the secondary housing market.
The primary one, that is, new buildings, is already designed for a fairly wealthy public, while the change in demand volumes occurred mainly at the expense of the average consumer. Moreover, due to the growing popularity of Spanish real estate at the international level, the primary segment even showed growth. Due to the presence of many foreign buyers.
Similar figures are demonstrated by a report from the company Hogaria. According to its data, the price drop in Burgos over the past year was 3.6%. The cost per square meter dropped to 1,374 euros. The data of both portals coincide in the general analysis of the current situation, both also indicate a striking difference in the local price dynamics from the one that was recorded on average in Spain.
According to the report of the Fotocasa portal, another leader of the Spanish market, at the national level, residential real estate prices recorded an increase of 3.3%. Growth was concentrated in Madrid, Catalonia and Baskonia. On average, the price per square meter for housing in the country by the end of 2022 has increased to 1,507 euros.
Returning to the situation in Burgos, it is worth noting that in the province there is an expected differentiation of indicators between different districts. Sometimes significant. For example, housing prices in the capital of Burgos remained almost identical to those recorded at the beginning of the year — a modest 0.1% increase in 12 months according to Idealista. The portal indicates that the price per square meter in the capital of the region was 1,611 euros. The company Hogaria indicates a price of 1,508 euros.
In view of this, it becomes obvious that mainly the peripheral areas of the province suffered last year, especially in such places as Miranda de Ebro and Aranda de Duero. Today, buyers pay about 1,000 euros per square meter in these cities.
At the moment, it is necessary to take a closer look at the regional housing markets in Spain, especially in the outback. Burgos, as mentioned above, is indicative in terms of assessing the future of the entire Spanish market in the medium term, given the rise in prices, falling incomes of the population, an increase in interest rates on lending and inflation.