Property prices in Spain 2022: it is one of the countries where housing prices are rising the least

Real estate prices in Spain 2022: Spain is one of the countries where housing prices are rising the least. Information for investors in Spanish housing.

Housing prices in Spain turned out to be more affordable than in the rest of the world and less susceptible to rapid growth. If you have Spanish housing, or you are just getting acquainted with properties for sale in Alicante or other regions of the country, we recommend you familiarize yourself with the statistics of the Spanish real estate market on housing prices. Especially, buyers will be interested in this point: according to the Knight Frank housing price index for the first quarter, Spain is one of the countries where housing prices are growing the least.

Housing price growth in 2022

The index reports an overall annual growth of 10.2% among the 56 countries analyzed. According to analysts, North America (18.6%) experienced the highest price growth, driven by price increases in the USA and Canada. In 25 of the countries, the growth was double-digit: Turkey (110%), faced with inflation, significantly outpaced the Czech Republic (25.9%) and Slovakia (22.1%), and Portugal (12.1%). In contrast, only two countries showed a decline: Malaysia (-0.1%) and Morocco (-7.5%). Spain (4.4%) is one of the countries with more moderate growth, below 5%, as in Italy (4%) or Finland (2.1%).

The Knight Frank Global House Price Index confirms that house prices in Europe continue to rise, increasing by 11.6% year-on-year in the first quarter of this year. This is 1.4% higher than the world average.

In North America alone (18.6%), growth was higher than in Europe driven by growth in the USA (18.8%) and Canada (18.4%), and the Asia-Pacific region (6.4% year-on-year) was the region where prices rose moderately.

“Despite the rise in prices, the housing market remains in good shape,” the consulting company notes. “The lifting of restrictions in connection with the pandemic has restored the demand for housing,” analysts say.

Of the 56 countries, 25 of the price increases were double-digit or exceeded this threshold – this was Turkey and its 110% growth. The aforementioned Czech Republic and Slovakia, where prices have increased by over 20% compared to the Turkish Republic, are acceptable. Nevertheless, such growth may frighten market players.

In the following countries, the growth was over 10%: the Netherlands (19.5%), Ireland (15.2%), Sweden (12.8%), Germany (12.5%), and Portugal (12.1%). The UK lagged only slightly (9.8%), while in France, the growth was 7.1%.

Spain ranked 45th out of 56 countries with an increase of 4.4%. A 4% increase was also found in another European country, Italy.

Spanish cities are far from the world’s biggest rise in property prices

The international consulting firm also presented the global housing price growth index, which analyzes 150 of the world’s largest cities. Istanbul, Ankara, and Izmir top the list driven by inflation in Turkey, while North American cities rank 12th: the Canadian city of Halifax (34.7%) entered the top 20, slightly behind the Turkish cities.

The American cities of Phoenix (32.9%), Miami (29.7%), San Diego (29.1%) and Dallas (28.8%) are one of the cities with the fastest growth in the first quarter of 2022. The largest European city is Bratislava, which took 13th place with an increase of 25.1%. The first Spanish city on the list is Madrid (87th place) after an annual growth of 7.2% from January to March 2022.

Madrid, Spain

Madrid is a dynamically developing real estate market. Since the lifting of restrictions after the pandemic, the demand for housing in the capital has recovered. Overseas buyers who are restricted in movement due to COVID-19 prevention measures are also returning.

Madrid is a city with high-quality developments, the economic engine of Spain, and has excellent international connections thanks to Barajas Airport,” explains Carlos Zamora, director of Knight Frank’s residential division in Spain.

After Madrid, Valencia (6.6%) and Malaga (6.1%) are also one of the 100 cities with rising prices. Barcelona (4.3%) and Seville (3.9%) are not in the top 100, as are London (4.7%), Milan (4.4%), Paris (3.6%), and Rome (0.8%).

Conclusion

If you are planning to buy a home, invest in commercial real estate or are interested in selling, you should continuously monitor changes in the market. However, the most sustainable sector may one day experience changes that will affect prices.

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