2023-06-28 10:49:29
The average price of new housing as a whole has accelerated in the last year after experiencing an increase i6.4% year-on-year, reaching 2,809 euros per square meter in June, despite the current context of rising interest rates and a slowdown in home sales, according to the new edition of the ‘Real Estate Sector Trends Report’, prepared by the Appraisal Society.
However, although the price of new housing continues to grow, the data registered in mid-2023 is still far from the maximum levels registered at the end of 2007, when they were close to 3,000 euros per square meter.
The Director of Institutions and Major Accounts at the Appraisal Society, Consuelo Villanueva, explained that these price increases are mainly due to the scarcity of the supply of new housing compared to the demand.
According to the report, all regions have experienced annual increases ranging from the 3.4% reached in Castilla-La Mancha to the 8.2% registered in the Balearic Islands, which registers the highest year-on-year growth ahead of Madrid ( 7.6%).
However, the Appraisal Society has detected a slowdown in these increases in all the autonomies, except in La Rioja, which is the only community whose unit price, in year-on-year terms, grows faster than the previous semester, specifically, 4.2% compared to 3.9% in December 2022 .
The Cost of construction increases by 8.1% in the last twelve months
According to the report, the cost of building new construction has reached 1,201 euros per square meter in June 2023, which represents a year-on-year increase of 8.1% compared to a year ago.
This indicator has also experienced a slight increase of 1.6% during the second quarter of the year, compared to the previous one. On the other hand, the ratio of construction above ground has stood at 966 euros per square meter, while that of below ground reaches 436 euros per square meter.
Real estate confidence index falls below 50 points
The Real Estate Confidence Index of the Valuation Society has reached 47.5 points out of 100 during the second quarter of 2023.
With this, it breaks with four consecutive quarters in which this indicator has been above 50 points, which reflects the indicative limit of a balanced situation. This is also the fourth consecutive decline that the Real Estate Confidence Index has fallen.
Specifically, the Index de Confidence has fallen three tenths compared to the first quarter of the year, when it stood at 47.8 points. These results continue in line with the current scenario of macroeconomic volatility, marked by the still persistent inflationary pressures and by the maintenance of a restrictive monetary policy, a feeling of uncertainty that is also reflected in the real estate market.
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