The recovery of the Spanish economy is in full swing as the country eases away from the sixth wave of the coronavirus pandemic, and nowhere is this more evident than in the property market, where house sales rose by 34.5% in January compared to the same month of 2021. In addition, mortgage approvals jumped by 28.3% during the first months of the year, as did the forming of new companies, albeit at a more conservative pace of 0.9%.
More home sales and at a higher price
The number of sales increased by 34.5% year-on-year nationwide, reaching 47,503 units and the average price per sqm stood at 1,599 euros, representing an increase of 6.8% in comparison with 2021. By type of housing, the sales of flats increased by 37.0% year-on-year, reaching 36,058 units, and their price rose by 4.2%. The demand for single-family homes experienced a similar surge, with 27.3% more of these houses selling for a price inflated by 11.1%.
Increase in sales by autonomous communities
The Balearic Islands registered the highest number of sales above the national average, at 66.7%, followed by the Canary Islands (54.9%). In the Valencian Community, real estate investment stood at 425 million euros last year, double 2020’s figure, and this trend has continued into 2022, with home sales skyrocketing by 45.1%. You might also like:Murcia house sales and purchases up almost 40 per cent on 2020.
Increase in the price of housing
House prices increased in every autonomous community in Spain bar three – Galicia, Navarra and La Rioja. Double-digit price hikes per metre square were registered in the Balearic Islands (22.6%), Cantabria (21.3%), Asturias (18.2%), Extremadura (17.4%), Valencia (16.2%), Aragon (12.7%), Catalonia (11.9%), Madrid (11.4%) and Andalucia (11.2%).
Increase in new companies
Data from the Notariat Statistical Information Centre also reveal that in January 2022 the formation of new companies rose by 0.9% year-on-year, to 7,921 first-time businesses. At the regional level, the creation of new companies increased in seven autonomous communities and decreased in the remaining 10. The increases reached double-digit rates in Extremadura (43.1%), Aragon (21.9%), Castilla y León (20.4%), the Basque Country (19.0%) and the Balearic Islands (10.1%).
Source: Spain News Today, March 2022