The median price of new homes has accelerated in the last year after experiencing a year-on-year increase of 6.4%until it is at 2.641 euros per square meter in June 2022, according to the new edition of the ‘Real Estate Sector Trends Report’, prepared by the Appraisal Society.
However, although the price of new housing continues to grow, the data registered in mid-2022 it is still far from the average values of the period 2007-2008when they were close to 3,000 euros per square meter.
According to the report, with the exception of the autonomous cities of Ceuta and Melilla, where annual increases are below the national average, all regions have experienced annual increases ranging from the 3.6% reached in La Rioja and 8.2% registered in the Balearic Islands, the latter being the only Community that experiences annual growth above 8%.
It is followed closely by Madrid, with an interannual increase of 7.8%. For their part, La Rioja and Extremadura are the only two autonomies with year-on-year increases of less than 4%. In the rest of the autonomous communities they experience increases that oscillate between 4% and 6.5%.
The cost of construction increases by 7.7% in the last twelve months
According to the report, the cost of building new construction has reached 1,111 euros per square meter in June 2022, which represents a year-on-year increase of 7.7% compared to a year ago.
This indicator has also experienced a slight increase of half a percentage point during the second quarter of the year, compared to the previous one. On the other hand, the ratio of construction above ground has stood at 977 euros/m2, while that of below ground reaches 424 euros/m2.
Real estate confidence index, with the highest value in two years
The Real Estate Confidence Index of the Valuation Society has reached 54.8 points out of 100 during the second quarter of 2022, the highest value in the last two years.
With this, there are now four consecutive quarters in which this indicator is above 50 points, the indicative limit of a balanced situation. This is also the sixth consecutive quarter that the Real Estate Confidence Index has increased, after registering its lowest value in the third quarter of 2020 (40.8 points), thus maintaining an upward trend that has been accentuating since the second quarter of 2021 .
Specifically, the Confidence Index has risen 1.6 points compared to the first quarter of the year and 7.2 points compared to the same period of the previous year. The results for the second quarter, and their improvement compared to the previous quarter, confirm an upward trend in this indicator thanks to the dynamism of real estate and mortgage activity, already observed since 2021, and coincides with the expansive phase of the cycle in which we we find.
7.3 years of full salary to buy a home
For its part, the Real Estate Effort Index prepared by the Appraisal Society, whose indicator measures the number of years of full salary that an average citizen needs to allocate for the purchase of an average-type home, has experienced a slight increase of one tenth during the second quarter of 2022 until reaching 7.3 years of full salary needed for buyers to purchase a home. In fact, despite this slight increase, this index continues to register values that are relatively lower than those registered in 2021.
By autonomous communities, increases were observed in 11 of the 17 regions, with Aragón and Extremadura registering the greatest increases in quarterly effort, with growth of two tenths in both cases.
Thus, the differences between communities range from the 8.6 years that a citizen in the Community of Madrid must allocate to buy a home to 4.6 years in La Rioja and/or Murcia. On the other hand, in six communities the index remains unchanged. Islas Baleares continues registering values well above the national average, since a citizen needs 15.8 years of full salary to be able to acquire a home in this community.