House prices rose 3% in 2021 with the Balearic Islands leading the way
The cost of construction of new construction has registered an increase of 15.6% in the last year, up to 2,551 euros per square meter. Despite the price boom, the Real Estate Confidence Index grew to 53.1 points out of a hundred. Housing does not escape inflation. The average house price registered an increase of 3% in 2021, up to 2,551 euros per square meter per month, according to the Real Estate Sector Trends Report published by the Appraisal Society. In turn, it has registered a semi-annual variation of 2.8%. By autonomous communities, all regions have recorded annual increases, the most pronounced has been that of the Balearic Islands, where the price of new housing has risen 4.1%. On the other side of the scale is Extremadura, where housing has registered a price increase of 4%. The price boom in the Balearic Islands was joined by Madrid and Barcelona, which registered annual increases of over 3%. In the rest of the Autonomous Communities, the increases have been between 2% and 3% year-on-year. By province capital, Barcelona ranks as the most expensive city with 4,630 euros per square meter, followed by Madrid, with a price per square meter for new homes of 3,802 euros, and San Sebastián, with 3,757 euros per square meter per month . The study also highlights the increase in real estate transactions that have registered an increase of 42.2% in the new first months of 2021 with respect to the values registered in the same period of 2020 and of 21.6% with respect to the same period 2019, prior to the pandemic. For its part, home mortgage concessions have increased during the same period by 15.1% compared to 2019 and 23.3% compared to 2020. In an inflationary context, the cost of construction of new construction has risen by 15 , 6% in the last year, up to 1,155 euros per square meter. Despite the rise in prices, the Real Estate Confidence Index of the appraiser has reached 53.1 points out of one hundred during the fourth quarter of 2021, the second consecutive quarter being that this indicator exceeds fifty points, in addition to accumulating five periods of rises after registering its lowest value in 2020, with 40.8 points. “It is true that the pandemic has been able to alter the length of the cycle, due to the impact on numerous macro and micro variables that are key to the demand and supply of housing, but let's be cautious, cycles exist, and when historically we have questioned their existence, the consequences almost take the financial system ahead ", says Juan Fernández-Aceytuno, CEO of Sociedad de Valuation. The study calculates that, currently, Spaniards would have to allocate 7.8 years of their full salary to buy a home. The indicator has registered various increases throughout 2021, ranging between 7.4 years during the first quarter and 7.8 at the end of the year.
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