House prices in Spain

Sociedad de Tasacion Residential Real Estate Trends Report – New Homes – June 2023

Sociedad de Tasación presents the first complete report that analyzes the situation of the new housing market in Spain

  • Price growth on the new-build housing market began to temper in June, reaching an average of €2,809 per sqm — still a comfortable distance from the Q4 2007 peak (€2,905 per sqm).
  • Year-on-year growth stood at 6.4% (2.8% six-monthly), compared with 7.1% (3.4%) in December 2022.
  • All 17 autonomous regions saw prices edge upwards, from 3.4% year on year in Castilla-La Mancha to 8.2% in the Balearic Islands.
  • The Confidence Index dropped for the fourth consecutive quarter, dropping below the midpoint to 47.5 pts, reflecting the general mood of uncertainty in the market.
  • The affordability index fell by 28 points over the last 12 months due to rising interest and mortgage rates.
  • New-build housing is becoming increasingly expensive to develop in Spain, with average construction costs rising 8.1% to €1,201 per sqm in June 2023 compared to one year earlier.
  • In terms of emissions, 53% of development projects to begin construction in the first half of 2023 received an “A” rating .

Full details of the last report can be checked at the following link: ST Sociedad de Tasación Residential Real Estate Trends Report