The latest figures published by the Spanish National Institute of Statistics (INE) confirm that the property market is continuing an upward trajectory, with September 2022 registering the highest number of sales in Spain in the month of September since 2007.
Almost 500,000 homes were sold in Spain during the first nine months of the year, suggesting that the total number of sales in 2022 will exceed that of 2021 and prove to be the highest annual figure since the peak of 2007.
However, on closer inspection there are indications that the market is slowing down after the recovery since the pandemic. The number of sales registered in September throughout Spain showed a year-on-year growth of 6.9%, the lowest annual increase since March 2021 and only the second time the increase has been in single digits since then.
Growth since 2007
When looking at the province of Barcelona, a similar trend is shown, with the number of sales registered in September 2022 even surpassing those in September 2007, by just over 21%. However, again, the year-on-year growth in September 2022 was lower than that of previous annual growths throughout the year, with almost 6,000 transactions being registered in September 2022 in the province of Barcelona, an increase of 8.2% over those in September 2021.
This is the first time the increase has been in single digits since March 2021. Sales of new homes decreased by 8.6% year-on-year in the province of Barcelona, possibly partly due to the lack of supply which in turn could be due to increased construction costs. Buyers are therefore turning to the resale market, resulting in an increase of almost 12% year-on-year of resale homes in the month of September.
It must also be noted that of the four major housing markets in Spain (Andalusia, the Community of Madrid, Catalonia and the Valencian Community), both Andalusia and the Community of Madrid saw an annual decrease in September whereas Catalonia and the Valencian Community both saw a growth, with sales increasing by 11.1% in Catalonia year-on-year.
Property transactions
According to the latest figures from the Generalitat de Catalunya, the number of property transactions in the third quarter of 2022 within the city of Barcelona itself grew by 7.3% when compared to the same quarter in 2021, with just over 4,000 sales being registered from July to September. The highly sought-after district of Eixample, the emblematic district of Sants- Montjuïc and the desirable Gràcia district all registered substantial increases, of 30%, 27.6% and 25.8% respectively. Three of the city’s ten districts (Barcelona Old Town, Horta-Guinardó and Sant Andreu), however, registered decreases.
– Eixample: 680 sales (30.0% increase)
– Sants-Montjuïc: 527 sales (27.6% increase)
– Gràcia: 405 sales (25.8% increase)
– Sarrià-Sant Gervasi: 375 sales (9.9% increase)
– Sant Martí: 588 sales (7.9% increase)
– Les Corts: 179 sales (7.2% increase)
– Nou Barris: 386 sales (6.9% increase)
– Barcelona Old Town (Ciutat Vella): 317 sales (0.6% decrease)
– Horta-Guinardó: 374 sales (16.3% decrease)
– Sant Andreu: 232 sales (29.1% decrease)
Average property prices
In another article, we talked about the cost of living in Barcelona, and the average price of housing is one of the factors that determines it.
According to leading property portal Idealista, average property prices across the city as a whole ended the third quarter of the year on €4,121 per square metre, an increase of 5% on average prices at the end of the same quarter of 2021. Average prices at the end of September 2022 in nine of the city’s ten districts registered an increase when compared to prices in the same period of 2021, although prices in only five districts have reached pre pandemic prices.
– Eixample: €4866 per square metre (9.42% increase)
– Gràcia: €4545 per square metre (8.37% increase)
– Les Corts: €4880 per square metre (5.45% increase)
– Sarrià-Sant Gervasi: €5417 per square metre (4.03% increase)
– Sant Martí: €3769 per square metre (3.86% increase)
– Sant Andreu: €3196 per square metre (3.77% increase)
– Sants-Montjuïc: €3465 per square metre (3.16% increase)
– Horta-Guinardó: €3095 per square metre (2.82% increase)
– Barcelona Old Town (Ciutat Vella): €4160 per square metre (0.65% increase)
– Nou Barris: €2473 per square metre (2.45% decrease)
Average prices in Barcelona City remain higher than those in Madrid City, where the average price across the city as a whole was €3,992 per square metre at the end of September 2022. Prices in the Catalan capital are below pre-pandemic levels however (€4205/m2 in September 2019 compared to €4121 in September 2021). So, if you are interested in seeing the luxury flats in Barcelona that we have available for you, just come in and contact us.
Rental prices
According to Idealista, rental prices have shown significant increases in all of the city’s ten districts. Across the city as a whole, average rental prices rose by 20.3%, ending the third quarter of the year on €17.8 per square metre. Barcelona Old Town registered the highest rise, ending the third quarter on €21 per square metre, a year-on-year increase of 28.8%. This was followed by Eixample, Sant Martí, Sants- Montjuïc and Gràcia, where prices rose by 26.7%, 20%, 18/7% and 17.2% respectively.
Barcelona Old Town (Cituat Vella): €21 per square metre (28.83% increase)
Eixample: €19 per square metre (26.67% increase)
Sant Martí: €18 per square metre ( 20.00% increase)
Sants-Montjuïc: €16.50 per square metre (18.71% increase)
Gràcia: €17 per square metre (17.24% increase)
Les Corts: €16.40 per square metre (15.49% increase)
Horta-Guinardó: €14.20 per square metre (15.45% increase)
Sant Andreu: €13.90 per square metre (14.88% increase)
Sarrià-Sant Gervasi: €18.20 per square metre (14.47% increase)
Nou Barris: €12.80 per square metre (7.56% increase)
Properties purchased by foreigners
Although in another article we already talked about whether a foreigner can buy a house in Spain, the numbers we show below reflect the answer:
The proportion of property purchases by foreigners in Catalonia has reached a new high, accumulating six quarters of growth. According to the Association of Estate Agents in Catalonia, 15.3% of purchases were by foreigners, exceeding 4,100 purchases in the third quarter of the year. In the province of Barcelona 10.7% of all property purchases were by foreign buyers.
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