{"id":49329,"date":"2024-09-09T13:17:53","date_gmt":"2024-09-09T11:17:53","guid":{"rendered":"https:\/\/blog.urbanitae.com\/?p=49329"},"modified":"2024-09-09T13:18:48","modified_gmt":"2024-09-09T11:18:48","slug":"5-provinces-account-for-43-of-the-new-housing-supply-in-spain","status":"publish","type":"post","link":"https:\/\/blog.urbanitae.com\/en\/2024\/09\/09\/5-provinces-account-for-43-of-the-new-housing-supply-in-spain\/","title":{"rendered":"5 provinces account for 43% of the new housing supply in Spain"},"content":{"rendered":"\n

Historically, Spaniards have preferred to own property, though buying a home is not an easy task for most. Prices are approaching historic levels<\/a> and are expected to continue rising, according to expert forecasts.<\/p>\n\n\n\n

Growth has been more restrained in the second quarter of the year, as indicated by the real estate statistics<\/a> published by the College of Registrars. During this period, there was a quarterly increase of 2.9%, reaching 2,057 euros per square meter.<\/strong> This rise is mainly due to the increase in the price of second-hand homes (3.8%), while new housing saw a 0.3% growth. This marks the fourth consecutive quarter of price increases.<\/p>\n\n\n\n

At the end of the second quarter, the average annual price also surpassed 2,000 euros per square meter, reaching 2,004 euros, the highest level since mid-2008. For new housing<\/a>, the average price stood at 2,194 euros, setting a new historical record. In the case of second-hand housing, at 1,958 euros per square meter, prices reached their highest levels since late 2008.<\/strong><\/p>\n\n\n\n

According to the forecasts of Sociedad de Tasaci\u00f3n for the residential market<\/a>, the average price of new flats will hit another peak by the end of this year, reaching 2,979 euros per square meter, representing a 3.8% increase compared to the previous year.<\/p>\n\n\n\n

Insufficient supply<\/h2>\n\n\n\n

The appraisers confirm that new construction is mainly concentrated in high-demand locations, meaning five provinces (Madrid, Barcelona, M\u00e1laga, Seville, and Alicante)<\/strong> account for 43% of the housing supply coming onto the market. When adding other provinces like Valencia, the Balearic Islands, Navarre, Murcia, and C\u00e1diz, this figure rises to 59% of all new construction in Spain, with the bulk of this segment concentrated in just 10 provinces.<\/p>\n\n\n\n

Although these markets show greater dynamism, the supply remains insufficient to meet a growing demand<\/a>, far exceeding the volume of finished products entering the market. This imbalance leads to increased pressure on new construction prices, as noted by Sociedad de Tasaci\u00f3n.<\/p>\n\n\n\n

Challenges and opportunities<\/h2>\n\n\n\n

In the current context, the new housing market in Spain faces several challenges. High construction costs, complex urban planning regulations, and the scarcity of land in urban areas are obstacles<\/strong> that developers must overcome. Furthermore, global economic uncertainty could affect demand in the coming years.<\/p>\n\n\n\n

However, the outlook remains positive. Digitalization, innovation in construction, and continued interest from both domestic and foreign buyers indicate that new housing will continue to be a cornerstone of the real estate market in Spain.<\/p>\n","protected":false},"excerpt":{"rendered":"

The average price of new homes will rise by 3.8% this year, according to Sociedad de Tasaci\u00f3n, marking a new high.<\/p>\n","protected":false},"author":1,"featured_media":49356,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[1027],"tags":[889,888],"class_list":["post-49329","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-investment-en","tag-housing","tag-residential-sector"],"blocksy_meta":[],"yoast_head":"\n5 provinces account for 43% of the new housing supply in Spain - Urbanitae Blog<\/title>\n<meta name=\"description\" content=\"The supply of new homes is not keeping pace with demand, and prices are reaching new highs. 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