In some areas of Spain, new building costs have significantly surged despite economic uncertainties, rising interest rates, and slower sales.
A recent report by the Spanish Evaluation Society indicates that the average price of new housing has increased by 6.4% over the past year, reaching €2,809 per sq.m in June 2023. This price is only slightly lower than the maximum recorded at the end of 2007, which was €2,905 per sq.m.
Consuelo Villanueva, the Director of Institutions and Large Accounts at Sociedad de Tasación, attributes the rise in housing prices to a shortage of new housing compared to the demand for it, which is prevalent across the country.
The report reveals that all autonomous communities have an annual growth rate of 3.4% in Castile-La Mancha and 8.2% in the Balearic Islands, which recorded the highest annual growth rate.
Previous reports indicate that Barcelona has the highest average price for new buildings, exceeding €5,000 per sq. m (€5,047 per square meter), followed by Madrid (€4,269) and San Sebastian (€4,185). The lowest average price was recorded in Ciudad Real (€1,286), Caceres (€1,293), and Badajoz (€1,307).
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