Do you want to know the current situation and the forecast evolution of housing prices in Sant Cugat? We are living in a time of great uncertainty in the world in general, in the economy and in the real estate sector, in particular. The war in Ukraine, the energy crisis or the increase in the price of raw materials are problems that have arisen in recent months and that will not have a solution in the short term. In this context, we want to talk about the forecasts for the evolution of housing prices in Sant Cugat. Always, based on the data and experience of Proddigia.
General situation in the housing market
In Spain, according to data from the College of Registrars relating to the second quarter of 2022, the average house price has registered a quarterly increase of 2.4%. This is lower than the previous quarter (3.1%), so an average amount of 1,957 euros per square meter has been reached.
Among the autonomous communities with the highest average prices, Catalonia stands out with 2,427 euros per square meter. On the other hand, in Catalonia the weight of home sales by foreigners also stands out, reaching 14%.
The provinces of Barcelona, Madrid, Alicante, Málaga, Valencia, Seville and Murcia registered, according to data from registrars, the highest number of sales.
The average surface area of the transmitted home has remained at 100.7 square meters.
The uncertainty we are experiencing has led to an increase in prices. This has resulted in a notable increase in inflation and, to stop this situation, the European Central Bank has increased interest rates. All of this means a higher monthly mortgage payment to pay compared to previous months.
The registrars’ report highlights the following data regarding mortgages:
– The number of mortgages on homes registered in the second quarter has represented a quarterly increase of 3%.
– Banks have reduced their market share in granting new mortgage loans during the second quarter. Thus, it stands at 89.9% of the loans granted, with a quarterly loss of -0.2%.
Mortgage debt per square meter has increased quarterly by 1.7%.
– The interest rates for contracting new mortgage loans have registered a slight decrease and have reached a historical minimum of 2.15%.
– Contracting at a fixed interest rate reached a maximum of 67.58%.
– The average monthly mortgage payment was €635.8, which represents a quarterly increase of 0.4%. One of the autonomous communities where the highest average monthly mortgage payments have been recorded is Catalonia with €722.5.
At Proddigia we have registered 540 home sales during the first and second quarters of 2022. This represents the same volume as in 2021, but 10% less than in 2020.
Residential market in Sant Cugat during the first and second quarters of 2022
The increase in interest rates will influence the number of home sales that take place during the end of this year and next year. This factor will affect, above all, populations that have a weaker per capita income. In the case of Sant Cugat, one of the highest per capita incomes in Catalonia is recorded. Although it will not be immune to the housing market situation, it will weather the situation safely and solidly.
Some of the characteristics of the Sant Cugat residential market that need to be highlighted are the following:
– There is a fairly significant supply problem of homes available for sale and rent. Currently, the supply is 50% lower than what it was three years ago. In fact, if we do not consider the duplicate housing ads that exist on the idealista.com portal, there are about 590 homes available.
– Regarding the price range, the most sought-after apartments are those between 600 and 800 thousand euros. In this price range we only found 5% of homes available among the offer.
– When an ad is published on a real estate portal that meets the price requirements that we have detailed, the sale is made within a maximum period of one week.
– Properties with prices around one million euros reach 50% of the offer in Sant Cugat.
– Regarding the number of rooms, the most sought-after apartments in Sant Cugat are those with four bedrooms and with a price of up to €650,000. However, the problem is that only 4% of the apartments offered meet these requirements. And, furthermore, when a home that meets them is published, it sells in a few days.
– Regarding rentals in Sant Cugat, we find 130 homes available throughout the town.
– The most sought-after rental homes are those priced up to €2,500 per month. And only 2% of homes meet this requirement.
– On the other hand, regarding four-bedroom apartments with a price of up to 1,800 euros, there is only a 7% supply.
– With regard to new construction, there is a lack of supply that does not have a short-term solution. Only 15% of home sales are new construction. And aspects such as the licensing problems of the Sant Cugat town council and the increase in the costs of construction materials influence this area.
What are the forecasts for the evolution of housing prices in Sant Cugat?
The evolution of housing prices in Sant Cugat according to our forecasts will be marked by the following elements:
– There will be an increase in sales until the end of this year. It will be due to the buyers, who have already agreed with the financial entities on the financing conditions.
– There will be a slowdown in home sales. In fact, this has already been detected during the previous months, but it will be more evident in the coming months.
– Homeowners must reduce purchase prices if they want to sell, depending on the type of home. For example, an owner may have a house priced above one million euros. Considering that 50% of the offer is concentrated in that section, you will have to reduce the price if you want to sign the sale.
– However, in the case of homes that are in price ranges with high demand (houses up to 800,000 euros and four-bedroom apartments up to 600,000 euros), we do not foresee price drops, due to the scarcity of the supply and the great existing demand.
In short, the global economic situation is affecting all sectors and also the evolution of housing prices in Sant Cugat. We will have to wait for the news that occurs in the coming months to see if the predictions we have seen come true. As well as if the market situation improves with the increase in supply to meet the existing demand.
Sant Cugat del Vallès
Market Report 2021
