Anyone who has looked at the property market in the United Kingdom can’t have failed to notice that house prices have been rising in recent times.
There are many reasons for house prices to rise, but a huge factor is the supply of homes cannot keep up with the demand for property. When this situation arises, it is inevitable that property prices rise, and it looks as though this is happening in Spain as well.
Will house prices rise further in Spain in 2022?
Recent analysis of the Spanish property market, but a valuation firm called Tinsa, suggested that the average price of property has increased by 4.3%. The same source believes house prices in Spain will rise by a further 4.3% in 2022.
Cristina Arias, director of the Tinsa Research Service, is quoted as saying; “The last quarter of 2021 saw an increase in residential market prices that consolidates the trend started in previous quarters and reflects an environment of growth in which demand is higher than supply and construction is beginning to reactivate cautiously, which could be indicative of an upward phase in the real estate cycle.”
In addition to a higher level of demand, it has also been said that an increase in the cost of raw materials has shaped the price of property in Spain in 2022.
When you have a range of factors combining to push a price upwards, there is not a lot that can be done to offset it, or bring a market back to normal. Hopefully over time the Spanish market will settle down, but for now, it looks as though interested buyers must consider the higher costs of entering the market.
Buyers want outdoor space with their Spanish property
Property expert, Christopher Nye spoke with the Daily Express and he believes outdoor space is a vital feature that buyers from Britain want to see when looking at Spanish property. Christopher said; “One agent I spoke to said he wouldn’t list anything that had no outdoor space as there were simply no buyers for that kind of property.”
Some of the property price rises in Spain include:
- Property prices in Bilbao have increased by 13.7%
- Seville has experienced a rise of 6.2% in property prices
- Valencia, where property prices have risen by 4.2%
There have also been considerable price rises in Barcelona and Madrid, so anyone looking for a bargain might need to dig a bit deeper.
Of course, there have also been some areas where prices have fallen. 11 provinces in Spain have seen a drop in property prices, with the vast majority of them being in north Spain, and inland areas of the country. The most significant price drops have occurred in Palencia and Ourense