Despite the increase, the prices of new and used housing are still far from the maximum reached in the 2007 bubble.

Despite the increase, the prices of new and used housing are still far from the maximum reached in the 2007 bubble.

Despite the increase, the prices of new and used housing are still far from the maximum reached in the 2007 bubble.

Image of Port Saplaya, on the Mediterranean coast.

The price of new and used housing registered an increase of 7.5% in December compared to the data for the same month of 2020. This is clear from the latest report prepared by Tinsa.

The end of the year registered an average interannual variation of 4.3%. The evolution of prices varies according to the geographical area, with the greatest rises in the Mediterranean coast. In that area, prices registered an interannual rise of 12.5% ​​in December, while the average interannual variation was 7.1%.

In the Balearic and Canary Islands, the price of new and used housing registered an increase of 8.2%with an average interannual variation of 6.1%.

“Demand has continued to invest part of its savings in the residential market, driven by new housing needs discovered during confinement and by historically low interest rates,” says Cristina Arias, director of the Tinsa Research Service.

The behavior of the price of these properties in the metropolitan areas was equal to the national average; in capitals and large cities it was lower, at 7.4%. In the rest of the municipalities, in 5.9%. “The number of visas accumulated during the year is close to pre-pandemic levels and the number of housing starts is increasing,” adds Cristina Arias.

FAR FROM THE HIGHS OF 2007

Despite the increases registered in the real estate sector after the last year and the recovery after the pandemic, the prices of new and used housing are still far from the maximums reached in 2007.

The national average remains 28.9% below the levels of that year. On the Mediterranean coast, this difference increases to 37.9%, and in metropolitan areas, to 36.3%.

The Balearic and Canary Islands are the areas closest to the prices of 2007although they are still 10.8% below.

However, all the geographical areas analyzed by the Tinsa index exceed the minimum data of February 2015. In the islands, prices have risen 36.2% since then, while in the capitals and large cities they have increased 34.7%.

Housing has become more expensive by 24% since February 2015. It was then that the average value in Spain hit its minimum in the financial and real estate crisis. The Mediterranean coast has also become more expensive than the Spanish average: 26.9%

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