Housing continues to rise unabated in Spain, registering very sharp increases that have meant a new price record in September, in a scenario of cheaper credit that could aggravate the trend in the coming months.
According to data published by the Idealista real estate portal on Monday, the average sales cost of housing rose 8.7 percent annually in the third quarter of 2024, reaching 2,182 euros per square meter, a new historical high in the historical series of Idealistic.
From Idealista they point out that the situation is alarming, since new buyers must allocate more than 30 percent of their income to paying the mortgage.
Francisco Iñareta, spokesperson for Idealista, advocates taking measures immediately while being critical of “the lack of foresight”, “the absence of political dialogue”, “the bureaucratic labyrinths” or the “populist noise around housing ”, to which have been added the shortage of labor or the disappearance of specialized construction companies and the demographic increase.
“It would be urgent for the necessary measures to be taken at the political level, without red lines, to encourage and accelerate the construction of new housing where necessary and decisive support for the implementation of large developments that provide relief in the markets.” more stressed,” he points out.
The rising trend has continued to be seen for years, but the increases have not been homogeneous throughout the country.
In large capitals such as Madrid, Valencia and Barcelona, housing has become more expensive by 17.8 percent, 17.6 percent and 9.8 percent annually in the third quarter, respectively, and a total of 16 provincial capitals have set historical highs.
The difficulty of accessing housing is also aggravated by the meteoric increase in rental prices, which according to data published this week by Idealista, registered an increase of 10.2 percent annually at the end of the third quarter.
It does not seem that the situation is about to change, since, with the interest rate relaxation cycle already underway and inflation falling faster than expected, it cannot be ruled out that the European Central Bank (ECB) will accelerate the cuts , skyrocketing the number of potential buyers attracted by cheaper credit.
At the moment, the markets predict that by December 2025 the deposit rate (a barometer of the interest that credit institutions receive for their overnight deposits in the central bank, one of the references for the cost of money in the eurozone) is at 1.75 percent, a drop from the current 3.5 percent.
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