2022-08-06-莱坊-Spain_New_Build_Residential_Snapshot_Q2_2022_June_2022_2页_764kb

Residential Market Summary - Q2 2022

Core Content

This report provides an overview of the Spanish residential market for Q2 2022, focusing on key indicators such as approvals, final works certificates, transactions, and housing prices. It also includes insights on the impact of the ongoing economic and inflationary environment, as well as the role of foreign buyers in the market.

Main Trends and Statistics

Approvals and Final Works Certificates

• Approvals: In Q1 2022, there were 28,330 approvals, representing a +19% increase compared to Q1 2021.
• Final Works Certificates: In Q1 2022, there were 20,230 final works certificates, a +2% increase from the previous year.
• Year-end expectations:
  • Approvals are expected to close the year at around 100,000, a -8% decrease compared to 2021.
  • Final works certificates are projected to decrease by -10% compared to 2021 due to the lag between approvals and completions.

Transactions and Prices

• Transactions: In Q1 2022, over 152,400 free housing transactions were recorded, up by +29% compared to Q1 2021.
• Year-end expectations: The number of transactions is expected to reach 475,000, a -8% decrease from 2021.
• Prices:
  • Free housing price: Increased by +6.7% to 1,734 €/sq m in Q1 2022.
  • New build price: Reached 1,980 €/sq m, up by +5.5%.
  • Existing housing price: Increased by +6.7% to 1,726 €/sq m.
  • Regional variations: Tarragona, Gerona, and the Balearic Islands saw the highest price increases, ranging between 10% and 11%.

Foreign Buyers

• Foreign buyers: Continue to be the main source of demand, accounting for nearly 50% of all transactions.

Economic and Inflationary Context

• GDP Growth: In Q1 2022, Spain's GDP growth was close to +6% year-on-year, but the expected growth for the year may not be reached due to the current economic situation.
• CPI Inflation: The Consumer Price Index (CPI) is rising sharply, acting as a brake on economic growth and affecting market forecasts.
• Mortgages: The number of mortgages started the year with almost 120,000, an annual growth of over +20%, but the forecast indicates that the total number will end the year slightly below 2021 levels, at ~390,000.

Impact of COVID-19

• The ongoing impact of the Novel Coronavirus (COVID-19) is affecting market activity across all sectors.
• Due to the uncertainty of future impacts and limited comparable data, the report is based on current market insights and highlights the potential for swift changes in the market.

Key Contacts

• Carlos Zamora
  Partner, Head of Residential
  Phone: +34600919041
  Email: Carlos.Zamora@es.knightfrank.com

• Rosa Uriol
  Head of Research
  Phone: +34600919114
  Email: RosaUriol@es.knightfrank.com

Recent Publications

• Global Buyer Survey. 2021
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• Global House Price Index. Q1 2022
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Report Sources

• Approvals and Final Works Certificates: Ministry of Public Works / INE
• Transactions and Prices: Ministry of Public Works
• Mortgage data: Knight Frank Research / INE
• CPI data: INE

Disclaimer

• This report is for general information only and should not be relied upon for any decision-making.
• Knight Frank España, S.A.U. does not accept any responsibility or liability for any loss or damage resulting from the use of this report.
• Reproduction of this report in whole or part is not permitted without prior written approval.
• Knight Frank España is a limited liability partnership registered in Madrid with CIF A-79122552.
  Registered office: Suero de Quiñones 34, 28002 Madrid.
  Reports are available at:
  • Spanish: knightfrank.es
  • English: knightfrank.com/research