The cost of new housing in Spain is approaching the 2007 record

What has happened? The prices for new housing continue to rise this year and may approach historical maximum s recorded during the boom in the real estate market.

Details. According to the latest report from the Valuation Society (Sociedad de Tasación), the price per sq. m. of new housing has exceeded €2,800 for the first time since 2008, after being €2,809/m2 in the second quarter of the year, and could reach €2,873/m2 at the end year. This is very close to the figure recorded at the end of 2007 (€2,905).

The appraisers say prices have risen e in all provincial capitals last spring, with year-on-year increases ranging from 2.1% in Zamora to 8.2% in Malaga or Palma de Mallorca.

Capital Cities. Barcelona has recorded the highest average price indicator, breaking the €5,000/m2 barrier for the first time (up to reaching a unit price of 5,047 €/m2), followed by Madrid (€4,269/m2) and San Sebastian (€4,185/m2). These are the only three capitals in Spain where the cost of new housing has exceeded €4,000 per sq.m.

On the other hand, the lowest average is recorded in Ciudad Real (€1,286 /m2), Caceres (€1,293/m2) and Badajoz (€1,307/m2).

Quote. According to the appraisers, “the upward pressure on prices is mainly due to the shortage of new housing supply compared to demand.”

Source: Idealista

Photo by Kaspars Upmanis on Unsplash

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