New houses have become especially more expensive: their average price increased by 6.2% over the quarter , reaching 2,655 euros per square meter. Secondary housing added 2.2%, stopping at around 2,366 euros per sq. m. The leaders in cost among the regions were:
- Madrid (4,407 euros per square meter),
- Balearic Islands (4,173 euros per square meter),
- Basque Country (3,474 euros per square meter),
- Catalonia (2,852 euros per square meter).
The highest prices in the provinces are recorded in:
- San Sebastian (6,154 euros per square meter),
- Madrid (5,428 euros per square meter),
- Barcelona (4,922 euros per square meter).
Despite record prices, the number of home purchase and sale transactions remains high. In the 1st quarter, 178,096 transactions were registered, which is the third highest figure since the third quarter of 2007. Although the number of transactions decreased by a symbolic 0.1% compared to the previous quarter, and by 1.9% year-on-year, the market is still active. At the same time, new home sales increased by 7.2% in the quarter, while secondary housing sales decreased by 2%.
The activity of foreign buyers continues to grow. The share of transactions involving non-residents reached 13.92%, which corresponds to almost 24,800 purchases. The British (6.82% of all transactions with foreigners), the Dutch (6.56%) and the Moroccans (6.21%) most often purchased housing in Spain.
The most popular among foreign buyers are:
- Balearic Islands (28.9% of all transactions),
- Valencia (28.2%),
- The Canary Islands (22.8%).
Mortgage lending is also on the rise. During the quarter, 133,618 transactions were completed, which is 0.9% more than in the previous quarter. The average loan amount has reached a historical maximum of 172,430 euros. At the same time, the average interest rate on new loans was 2.99%, having slightly increased after seven quarters of decline. The share of fixed-rate loans continues to dominate - 67.11% of the total.
However, record price increases are increasingly hitting housing affordability. The average monthly mortgage payment increased to 807.8 euros, which is 34% of the average salary. Analysts at the College of Registrars warn that the current price increase cannot continue indefinitely, and sooner or later it will lead to a reduction in market activity. In the meantime, demand remains steady due to low rates, population growth, and limited supply.
