From a village to an island: what can you buy for the price of a house?
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Neither the pandemic, nor the inflationary crisis nor the sharp rise in interest rates. Nothing has been able to stop the escalation of housing prices that these days it returns to take over the political focus, facing a slab that already implies that Spaniards have to allocate seven and a half years of their gross salary to acquire a property, according to the Bank of Spain. They are only two points less than the maximum reached in 2007, in the middle of the real estate bubble.
Buying a house has become an almost impossible mission for average incomes. Last year, the price per square meter shot up to 1,963 euros, a high in 2008. And taking into account that the average surface area of homes in Spain is 99 square meters – according to the Registrars – the final average price would be around 194,500 euros. . An amount with which, however implausible it may seem, you could buy everything from an island in Norway to a village in Segovia, including medieval castles or racehorses.
How much does it cost to buy a house compared to other luxury items?
As in everything, the trend goes by neighborhood. There are regions where the amounts are more ‘shameless’. The Balearic Islands and Madrid take the cake, exceeding 300,000 euros on average. That is, for what it costs to buy a house in the capital, you could buy two F1 cars at official auctions at a discount and a castle in Japan. And there would be spare change.
These regions are followed by the Basque Country, Catalonia, Navarra and the Canary Islands, while on the other side of the table are Castilla la Mancha and Extremadura, below 100,000 euros, according to the registrars. The equivalent of two second-hand motorhomes.
The lack of supply continues to be the main factor of pressure on prices, which have now been on the rise for 10 consecutive years, especially due to the pressure exerted by new construction housing.
1963
euros
It is the average price per square meter of a home in Spain, highest since 2008.
“This shortage in the areas of concentration of demand will continue to support prices,” says Cristina Arias, director of Tinsa’s research services, who points to the strength of the labor market and the recovery of the purchasing power of Spaniards as factors that will continue. maintaining demand despite the rise in prices.
That is, those who can buy because they maintain their jobs and have seen some improvement in their salaries will have to continue facing prices that are very similar to those seen during the bubble, although the reasons for the rebound are now very different from those seen. They marked that era of uncontrolled buildings.
Future
“The shortage of supply in areas of concentration of demand will continue to support prices”
Cristina Arias
Director of the Tinsa Studies Service
“The ECB’s decision to cut interest rates will also encourage the granting of mortgages and, therefore, will discourage the possibility of apartments becoming cheaper,” adds Ferrán Font, director of studies at Pisos.com.
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