The Spanish residential market remains very active as can be seen by the facts and figures in the start of the year. According to Tinsa, the Society of Appraisers, in January 2022 housing prices have increased 6,2% in relation to the same month of 2021. This means that in only one year prices have bounced back considerably. However, we must take into account that at the beginning of last year the pandemic had nearly paralyzed the whole country and, logically, this had consequences in the real estate market. If we compare the data with the previous month of December 2021, the rise was only of 0,7%. These facts and figures confirm that the real estate sector in Spain continues to be in good health. Some weeks ago, we wrote an article in this blog about the price of housing which is expected to rise until 2023. In that article, we stated that according to experts on the matter in 2023 a turning point could occur. What is currently obvious is that there continues to exist a great demand in this sector and thus causing an increase in housing prices. This demand is constant throughout the country and according to Tinsa housing prices in Spain increased this January in relation to December 2021, except in the Mediterranean coastal areas where prices stabilized after the increase they had experienced during the previous months.

AN IMPORTANT REVALUATION

If we compare the facts and figures shown by the Society of Appraisers with those of January 2021, we can see a more than 7% price increase in Metropolitan areas, the Canary Islands, the Balearics and some other municipalities. The Mediterranean coast comes next with an increase of 6,2% and lastly, with a 5,2% price increase (we always refer to an annual rise, as we have already mentioned), come the provincial capitals and other large cities. If we measure the monthly increments, the areas whose prices increased the most are the Metropolitan ones with a rise of 1,3%. The rest of the areas increased around 0,6% except for the Mediterranean coast whose prices receded 0,1%. Taking into consideration all these facts and figures, Tinsa has drawn the conclusion that since 2008, when the real estate bubble burst, the average price of housing in our country has risen 27,4% comparing it with the lowest records that took place those days. On the contrary, if we take a look at the highest peak in 2007, just before the financial crisis broke out, then we must say that housing prices in Spain dropped 24,3%. Unquestionably, we have to point out that housing in Spain has overcome and triumphed over the earthquake caused by the pandemic. Housing deals have continued to take place in our country and the prospects for 2022 indicate a growth throughout the year, as we have already mentioned.

PRICES THAT ARE FAR AWAY FROM THOSE OF THE PROPERTY BUBBLE

If we take the year 2008 as a starting point when housing prices in Spain were at their lowest, then it can be estimated that in the provincial capitals and in the large cities prices have increased 32,8%, whereas in the Balearics and the Canary Islands prices have risen 29,8%. If we compare these facts and figures when the prices were at their peak during the property bubble, then we can say that the average price of housing in the Balearics and in the Canary Islands is 12% lower, whereas in the provincial capitals and large cities they are 23% below. This data shows that we are not approaching the prices of those days when the real estate bubble was about to burst.