The year is coming to an end and we can already analyse the behaviour of property sales in Barcelona during 2022. At Proddigia we have studied the data and we want to share it with you.
Inflation and rising interest rates
The two main problems that are beginning to affect the buying and selling of homes in Barcelona and throughout Spain are as follows:
Rising inflation.
As we have already seen in our videoblog Inflation: How does it affect the property market? Causes and effects, inflation has various effects on the real estate market:
– In new housing, the increase in prices means an increase in construction costs due to the increase in the cost of materials and energy. Developers are beginning to pass on the price increase in the final price of housing.
– Second-hand properties feel less the effects of inflation as they are safe-haven values that maintain their value even in times of crisis. However, inflation can be felt when building work is carried out on a house, as materials have become more expensive.
The increase in mortgage interest rates.
At the end of October it was already announced that the European Central Bank raised interest rates by 75 basis points to 2%. This is the third increase since July. This has resulted in an increase in the mortgage repayments paid by families.
Data on property sales and purchases in Barcelona
The data for the third quarter of 2022 for sales and purchases in Barcelona show a cautious situation:
– Transmissions have fallen by 22%. If we analyse the data by districts, there have been decreases in transfers in Sant Gervasi with 36% (in Galvani the decrease was 30%), Les Corts with 35%, Eixample with 23% and Gracia with 12%.
The price per square metre has also decreased by 4.5%. In this case, Eixample, Les Corts and Gracia recorded a reduction of between 1% and 2%. However, Sant Gervasi recorded a slight rise of 2.4% and in Galvani there was a 7.8% increase in the price per square metre compared to the previous quarter.
Once the data for the last quarter of 2022 is published, we will be able to have an overview of the year and the trends that may continue in 2023 in the Barcelona residential market. We will keep you updated as soon as possible.
