According to the Fórum Empresarial del Llobregat (FEL) report on the economic situation in the real estate market of L'Hospitalet and Bajo, in the province of Barcelona, the pace of real estate sales during the 2nd half of 2022 has already exceeded that of the pre-pandemic months of 2019. However, the growth of interest rates for mortgage lending can still correct the market movement.
But so far, despite the developing crisis in the global and national economy, as well as the threat of inflation, sales of apartments in L'Hospitalet and Bajo Llobregat continue to grow.
This is indicated not only by the latest quarterly report on the local market from Fórum Empresarial del Llobregat, but also by the statistics provided by the ST Sociedad de Tasacion analytics. According to the latter, not only sales are growing, but also prices. Real estate values will continue to grow during the 2nd half of 2022, having already exceeded the figures for the 1st quarter of 2019 by 2.5%.
Other experts, however, are in no hurry to publish their forecasts for the 2nd half of the year, even despite the positive results of the last 3 months. It is not obvious yet how the continuing increase in interest rates on lending (approx. 0.5% minimum) will affect the sector. It is also unknown how the Euribor rating will perform.
FEL representatives acknowledge: "We are in economic uncertainty and this means that we cannot now be sure of the direction of the future development of the real estate market."
However, the current situation remains at least positive. Between April and June in L'Hospitalet and Bajo Llobregat, approximately 3,450 real estate transactions were completed. This is indicated by the observational data received by the Association of Entrepreneurs of L'Hospitalete and Bajo Llobregat (AEBALL).
Growth compared to 2021
According to available data, the results of the 2nd quarter of 2022 were 18.7% higher than during the same period in 2021. And a ¼ more transactions were recorded in the 2nd quarter of 2022 compared to the 1st quarter of 2019. During the 1st quarter in 2019, the number of real estate transactions exceeded 2,750.
The largest number of apartment transactions was recorded in the following cities: L'Hospitalet (222), Cornella (95), Molins de Rey (62), El Prat and Martorell (48), Castelldefels (43), and Sant Joan Despi (40). These figures are offset by declines in municipalities such as Begues (-66.6%), Abrera (-52.5%), and Castelvi de Rosanes (-50%).
All the Prices Grow
ST Sociedad de Tasacion has also collected information on real estate price changes in the region over the past 6 months and indicates that price growth stopped by the end of the 1st half of the year at around €2,535 per square meter. The buyers spent more on real estate purchasing since the first months of 2022. This growth has been uneven and variable in different municipalities.
The most expensive, and this is expected, the purchase of an apartment will cost buyers in Bajo Llobregat - 3,040 euros per square meter. This is 2.4% higher than the price at the end of 2021. Bajo Llobregat is followed by Esplugues (€2,920), Sant Joan Despi (€2,900), Castelldefels (€2,750), Cornella (€2,520), Viladecans (€2,500), Gava (€2,430) and El Prat de Llobregat (€2,360). In each of these cities, there was an increase in prices from 2.2% to 3.1%.