It appears that soaring mortgage interest rates have done little to dampen the demand for property in Spain, and the price of previously owned homes has already increased by a considerable 2.9% in the first quarter of the year, according to the latest data. The figures are even more impressive when the annual variations are taken into account, representing a 7.3% price hike in the last 12 months.
Every region of Spain reported an increase in the cost of used housing with the average square foot now setting buyers back 1,943 euroes. A large proportion of buyers of Spain are second property owners and as demand continues to exceed supply in the most popular areas the prices reflect this resurgence in the market.
Spain real-estate insiders say they are not anticipating any drastic drop in prices in the coming months and indeed in popular hotspots like Huelva, Granada and Alicante they might even continue to increase.
Sellers in the Region of Murica have ramped their expectation the most in the first quarter adding 4.6% more to the price tag than last year. It’s followed by Andalucía with 4.2% increase and the Valencian Community where homes are now 3.8% more expensive.
On the other hand, the market has hardly shifted in the likes of Asturias, Castilla-La Mancha and Euskadi where second-hand houses have only increased by between 0.6% and 0.8%. Home owners now charge an average of 3,746 euros/m2 the highest figure ever seen by the property experts.
Spain’s capital Madrid comes in as close second at 3,111 euros/m2 another all time high. And while the Region of Murcia has hiked up its prices this year quite substantially its still the second-cheapest place in Spain to purchase at 1,130 euros per square meter.
