In 2019, new housing has increased by 4.5% on average in the capitals of the Spanish province and prices will continue to stop in 2020. According to statistics published on Wednesday by the Appraisal Society, the average price per square meter in The provincial capitals stood at 2,453 euros. Barcelona, with 4,433 euros per square meter and an annual growth of 6.1%, and Madrid (3,627 euros per square meter and growth of 6.6%) are the most expensive cities and have led the growth of this segment of the real estate market.
Outside the largest cities, the situation is very different. In the rest of the 400 municipalities analyzed by the appraiser, the average price is 1,682 euros per square meter. And the price increase in the last 12 months is also smaller: 1.8%.
By autonomous communities, Catalonia (3,934 euros per square meter), Madrid (3,627 euros per square meter) and the Basque Country (2,734 euros per square meter) are the three with the most expensive new housing. At the opposite end are Extremadura (1,198 euros per square meter), Murcia (1,260 euros per square meter) and Castilla – La Mancha (1,434 euros per square meter).
The rise in prices above what wages rise causes the real estate effort index, which the Appraisal Society measures from the average gross salary and the average price of the flats, has worsened in 2019. According to its calculations, as On average, a Spaniard needs 7.4 years of gross salary (considering that all that money is available to devote it entirely to the payment of housing) to acquire a house. It is about a month longer than what was needed at the end of 2018.
The different personal income and prices of the real estate market that are registered by territories also generate large differences in this indicator. Thus, in the Balearic Islands it stands at 16.4 years, while in La Rioja and Murcia it is 4.9 years. The island community is also the one with the worst stop in the accessibility index, which measures the population’s indebtedness capacity to acquire a mortgage with an IRPH interest rate of 1.80% and a repayment term of 30 years. Counting that 100 is the reference from which the indebtedness is sufficient (that is, that you can have access to a mortgage to buy a house), Baleares stays at 47 points. Two other communities, Catalonia (89) and Madrid (92) remain below the 100-point barrier, which all others exceed.
Despite the difficulties, the statistics include, in the line of others recently published, an important inflection in the real estate market Throughout 2019. Faced with the acceleration experienced in recent years, prices have begun to slow down and, according to the Valuation Society forecasts, they will do so even more in 2020, although they will not fall. The appraisal experts estimate that during the next 12 months, housing will be expensive between 3% and 3.5%.