New housing prices in Spain grew by 7 percent in 2022
The price of new properties in Spain continued to rise in 2022. Here's where they grew the most and least.
The average price of new housing in Spain increased by 7.1 percent over the last twelve months to reach €2,732/m2 in December 2022, according to a report published by the Sociedad de Tasación, a company that specialises in property valuations, appraisals, and housing market data.
New house prices accelerated their growth in the second half of 2022, due to "a series of factors such as the lack of new housing stock, the high demand for this type [new build] of property, which exceeds the supply available on the market; the increase in construction costs and raw materials; [and] the congestion of supply chains and the increase in the cost of financing," according to the report.
In the report, Juan Fernández-Aceytuno, Sociedad de Tasación's CEO, explained that "the real estate sector has been performing well in recent months despite the macroeconomic context in which we find ourselves".
READ ALSO: Property in Spain: What changes about renting and buying in 2023?
"The market's performance during the final stretch of 2022 shows the impact of the rise in interest rates on the levels of real estate activity, but, in the case of new housing, at the close of the year there is still sustained growth that is higher or equal to that recorded in 2019," he added.
Not only are the prices of new houses rising, but the cost of constructing new properties in Spain is also on the up, reaching €1,182/m2 in December 2022 - an increase of 2.3 percent compared to a year ago.
Yet despite this rise, the December 2022 price/m2 is still nowhere close to the 2007 pre-housing bubble bursting price, when the average price of a new home in Spain reached €3,000/m2.
Thinking about buying a new home in Spain? Or perhaps building one?
You'll need to know where in Spain prices have jumped the most.
The Local breaks down the price rises region by region and highlights some of the provinces where prices have jumped.
READ ALSO: Six things to know about Spain’s new housing law
Regional variation
By region, the largest annual increases were in the Balearic Islands, where the average price of a new build home went up by a whopping 9.1 percent, and in Madrid, where it increased by 8.5 percent.
Prices grew the least in La Rioja (3.9 percent), Castilla-La Mancha (4.2 percent), and Extremadura (4.4 percent.)
On the Canary Islands, prices were up 6.9 percent, and the other regions favoured by foreign buyers like Andalusia (7.1 percent), Valencia (7.0 percent) Catalonia (6.2 percent) and Murcia (6.2 percent) all saw significant rises.
House price increases by region
- Balearic Islands - 9.1 percent
- Madrid - 8.5 percent
- Navarra - 7.2 percent
- Andalusia - 7.1 percent
- Valencia - 7.0 percent
- Basque Country - 6.9 percent
- Cantabria - 6.5 percent
- Gran Canaria - 6.3 percent
- Murcia - 6.2 percent
- Catalonia - 6.2 percent
- Aragón - 6.1 percent
- Asturias - 5.7 percent
- Castilla y Leon - 5.6 percent
- Galicia - 5.4 percent
- Extremadura - 4.4 percent
- Castilla-La Mancha - 4.2 percent
- La Rioja - 3.9 percent
At the provincial level there are also some notable rises. Annual price variation ranged from just 2.2 percent in Ávila to 9.3 percent down in Málaga, the provincial capital where the price of new housing increased the most in Spain in 2022.
In fact, the year-on-year increases in the wider Málaga province (11.2 percent) and Alicante (9.3 percent) stand out not only due to the steep increase in costs but because both are traditionally popular with foreign homeowners.
On the other hand, provinces such as Cáceres (4 percent), Lleida (3.7 percent), Jaén (3.2 percent) and Zamora (2.4 percent) experienced much more sluggish growth in 2022.
Price/m2
In terms of price/m2, the most expensive regions in Spain were, perhaps unsurprisingly, Catalonia (€4,358/m2), followed by Madrid (€4,125/m2) and then the Basque Country (€3,027/m2).
In terms of provincial capitals, it was Barcelona (€4,917/ m2) that maintained the highest average price/m2 of new housing anywhere in Spain. Next up was Madrid (€4,125/m2) and San Sebastián (€4,048/m2), the only other capitals exceeding the €4,000/m2 threshold.
On the cheaper end, Badajoz (€1,290/m2), Cáceres (€1,271/m2) and Ciudad Real (€1,268/m2) had the lowest average prices/m2 in Spain in 2022.
Saving up
Sociedad de Tasación's 'Real Estate Effort Index', an affordability indicator that measures the number of years of full salary that an average citizen needs to purchase a medium-sized home in a particular area, increased by a tenth during the fourth quarter of 2022 and now sits at 7.6 years.
Like with the price rises, however, there are some major variations in this index based on where exactly in Spain you are. In Madrid, this figure is 9 years, for example, but in La Rioja it takes just 4.6 years to save up to buy a property.
Much like with its eye-watering annual price rise, the Balearics also buck the national average in terms of the affordability index: according to Sociedad de Tasación's index a buyer would need 16.4 years of full salary to be able to save up and buy a home there.
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The average price of new housing in Spain increased by 7.1 percent over the last twelve months to reach €2,732/m2 in December 2022, according to a report published by the Sociedad de Tasación, a company that specialises in property valuations, appraisals, and housing market data.
New house prices accelerated their growth in the second half of 2022, due to "a series of factors such as the lack of new housing stock, the high demand for this type [new build] of property, which exceeds the supply available on the market; the increase in construction costs and raw materials; [and] the congestion of supply chains and the increase in the cost of financing," according to the report.
In the report, Juan Fernández-Aceytuno, Sociedad de Tasación's CEO, explained that "the real estate sector has been performing well in recent months despite the macroeconomic context in which we find ourselves".
READ ALSO: Property in Spain: What changes about renting and buying in 2023?
"The market's performance during the final stretch of 2022 shows the impact of the rise in interest rates on the levels of real estate activity, but, in the case of new housing, at the close of the year there is still sustained growth that is higher or equal to that recorded in 2019," he added.
Not only are the prices of new houses rising, but the cost of constructing new properties in Spain is also on the up, reaching €1,182/m2 in December 2022 - an increase of 2.3 percent compared to a year ago.
Yet despite this rise, the December 2022 price/m2 is still nowhere close to the 2007 pre-housing bubble bursting price, when the average price of a new home in Spain reached €3,000/m2.
Thinking about buying a new home in Spain? Or perhaps building one?
You'll need to know where in Spain prices have jumped the most.
The Local breaks down the price rises region by region and highlights some of the provinces where prices have jumped.
READ ALSO: Six things to know about Spain’s new housing law
Regional variation
By region, the largest annual increases were in the Balearic Islands, where the average price of a new build home went up by a whopping 9.1 percent, and in Madrid, where it increased by 8.5 percent.
Prices grew the least in La Rioja (3.9 percent), Castilla-La Mancha (4.2 percent), and Extremadura (4.4 percent.)
On the Canary Islands, prices were up 6.9 percent, and the other regions favoured by foreign buyers like Andalusia (7.1 percent), Valencia (7.0 percent) Catalonia (6.2 percent) and Murcia (6.2 percent) all saw significant rises.
House price increases by region
- Balearic Islands - 9.1 percent
- Madrid - 8.5 percent
- Navarra - 7.2 percent
- Andalusia - 7.1 percent
- Valencia - 7.0 percent
- Basque Country - 6.9 percent
- Cantabria - 6.5 percent
- Gran Canaria - 6.3 percent
- Murcia - 6.2 percent
- Catalonia - 6.2 percent
- Aragón - 6.1 percent
- Asturias - 5.7 percent
- Castilla y Leon - 5.6 percent
- Galicia - 5.4 percent
- Extremadura - 4.4 percent
- Castilla-La Mancha - 4.2 percent
- La Rioja - 3.9 percent
At the provincial level there are also some notable rises. Annual price variation ranged from just 2.2 percent in Ávila to 9.3 percent down in Málaga, the provincial capital where the price of new housing increased the most in Spain in 2022.
In fact, the year-on-year increases in the wider Málaga province (11.2 percent) and Alicante (9.3 percent) stand out not only due to the steep increase in costs but because both are traditionally popular with foreign homeowners.
On the other hand, provinces such as Cáceres (4 percent), Lleida (3.7 percent), Jaén (3.2 percent) and Zamora (2.4 percent) experienced much more sluggish growth in 2022.
Price/m2
In terms of price/m2, the most expensive regions in Spain were, perhaps unsurprisingly, Catalonia (€4,358/m2), followed by Madrid (€4,125/m2) and then the Basque Country (€3,027/m2).
In terms of provincial capitals, it was Barcelona (€4,917/ m2) that maintained the highest average price/m2 of new housing anywhere in Spain. Next up was Madrid (€4,125/m2) and San Sebastián (€4,048/m2), the only other capitals exceeding the €4,000/m2 threshold.
On the cheaper end, Badajoz (€1,290/m2), Cáceres (€1,271/m2) and Ciudad Real (€1,268/m2) had the lowest average prices/m2 in Spain in 2022.
Saving up
Sociedad de Tasación's 'Real Estate Effort Index', an affordability indicator that measures the number of years of full salary that an average citizen needs to purchase a medium-sized home in a particular area, increased by a tenth during the fourth quarter of 2022 and now sits at 7.6 years.
Like with the price rises, however, there are some major variations in this index based on where exactly in Spain you are. In Madrid, this figure is 9 years, for example, but in La Rioja it takes just 4.6 years to save up to buy a property.
Much like with its eye-watering annual price rise, the Balearics also buck the national average in terms of the affordability index: according to Sociedad de Tasación's index a buyer would need 16.4 years of full salary to be able to save up and buy a home there.
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