The latest data from the Notary Association reveals that sales of Spanish property in 2022 reached their highest in 15 years. Almost 720,000 homes changed hands last year as the real estate market in Spain recovered levels not seen since 2007. In addition, mortgages enjoyed an exceptional year and their best in over a decade.
Discover what’s in store for Spanish property this year
Sales of Spanish property up 6.1%
In 2022, the number of transactions rose by 6.1% annually to reach its highest since 2007. A total of 719,680 properties were sold last year on the residential market.
Most regions saw impressive upticks in sales, particularly the Canary Islands, where they jumped by 26.9%. Just three regions had fewer sales in 2022 than in 2021, such as Madrid, with a 1.1% decrease.
Apartments and flats most popular
In terms of property types, apartments and flats took the lion’s share of the market. They accounted for 548,631 units throughout Spain, a 7.8% increase compared to 2022. On the other hand, single-family homes represented less than a quarter of transactions and rose by just 0.7% in the year.
Booming mortgage market
Home loans experienced a boom last year. 355,470 sales of Spanish property included a mortgage in 2022, the highest figure for over ten years. The average loan amount rose by 3.8% to reach €153,357, although, in some regions, the uptick was considerably higher. For example, in La Rioja, average mortgages went up by 11.3% and in the Canary Islands, by 6%.
Buyers took out the highest loans in the Balearic Islands, where mortgages averaged €234,521 per transaction. At the other end stood Murcia, where home loans stood at €94,791.
Average property prices
According to data from the Notary Association, average prices in Spain went up by 7.2% last year to reach €1,615 per square metre. All regions except for Castilla-La Mancha experienced higher property prices in 2022, with several seeing double-digit upticks.
Madrid led by the table with a 12.2% increase in real estate values, followed closely by Murcia and the Canary Islands, up 11% and 10.4%, respectively. Other regions with higher-than-average upticks included Andalucia (8.7%) and the Comunidad Valenciana (10.3%).
The Balearic Islands registered the highest prices for sales of Spanish property, with an average of €3,200 per square metre, almost double the national figure. Real estate in Madrid cost €2,657 last year, the second most expensive in Spain.
Slight dip in last quarter
Data from Spanish notaries shows a slight downward trend in sales of Spanish property in the last three months of the year. While transactions soared by 22.8% in Q1, by Q4, they fell by 10.6% due to higher loan costs and inflation.
Prices in the last quarter mirrored the trend seen in sales when they barely changed at all compared to the rest of the year. For example, Spanish property prices went up by 11% on average between January and March but rose by just 3.5% from October to December.
In 2023, analysts believe transactions will drop compared to 2022, although the final balance will remain positive for the market generally. In the terms of prices, they predict little change during the year, with the exception of areas with high foreign demand, such as the Costa del Sol, Costa Blanca and the islands.
(Source: Notary Association)
