Baleares and Formentera are placed as the most expensive region and municipality to buy housing in September 2022 in Spain, according to the quarterly report released by pisos.com.
The portal has detailed this Monday that Baleares leads the quarterly ranking with an average amount of 3,605 per square meter and Formentera leads the list of the most expensive municipalities in the country with 9,849 euros per square meter.
In this sense, the Islands become the most expensive community in the country with a year-on-year increase of 12.07% and month-on-month increase of 1.55%, followed by Madrid with 3,309 euros/m2 average selling price, the Basque Country with 2.946 euros/m2 and Catalonia, which registered 2,577 euros/m2.
Specifically, Palma yielded the tenth highest quarterly increase in Spain with 2.86% and a year-on-year growth of 11.46%, the fourth highest in the country, with 3.662 euros per square meter in September 2022, in a ranking headed by Donostia-San Sebastián, which recorded 5,696 euros/m2.
Regarding the other municipalities, Muro, with 9.33%, was the fastest growing in the country in the third quarter, while Lloseta fell by 8.59% and became the ninth town that fell the most in Spain.
On the other hand, in the year-on-year variation, Sant Llorenç des Cardassar, with 26.95%, is the eleventh Spanish municipality with the highest growth, while Campos is the municipality that has fallen the most in the Balearic Islands with a drop of 14.88%.
Second hand housing
As for second-hand housing in Spain, in September 2022 it recorded an average price of 1,962 euros per square meter and shows a quarterly increase of 1.84%. Year-on-year, the increase was 6.02%, while the monthly rise was 0.57%.
“Second-hand housing has prolonged its upward trend in the third quarter of the year, but it is to be expected that with the recent interest rate hikes put on the table by the European Central Bank, the final stretch of the year will bring with it a slight slowdown,” explained the director of research at pisos.com, Ferran Font.
This was indicated by Font, who added that “the residential sector has moved within contained margins of increase if inflation is taken as a reference, due to a very active demand in search of opportunities”.
“The possible arrival of an economic recession will limit the thrust of a market that, faced with more expensive mortgages and buyers more focused on savings, and slow down the pace”, predicted the Director of Research.
Finally, Font insisted that “this slowdown will not be distributed evenly” in all areas of Spain and that the imbalances in population density between regions will also be appreciable “when the price curve is inverted”.
“We have witnessed how certain capitals have placed their housing prices at pre-bubble levels, while others still have a significant gap. The most powerful cities will hardly change, while others will have a downward trend”, he concluded.
For the full article, please visit Diario de Ibiza website here.