The price of housing is increasing considerably throughout Spain, both for purchase and for renting. However, CaixaBank experts explain that this increase in house prices is not occurring at the same rate in all the towns in the country. In other words, there is a considerable distance between the most expensive and the cheapest municipality.
On the other hand, it must be taken into account that the Euribor has exceeded 2.4% of its daily rate in September 2022. This rise will cause mortgages in Spain to become more expensive, especially variable rate ones.
According to CaixaBank professionals, in the first quarter of 2022, San Sebastián (Guipúzcoa) was the municipality with more than 25,000 inhabitants with the most expensive price per square meter in Spain. Specifically, 4,207.8 euros/m2. All this, is according to data published by the Ministry of Transport, Mobility and Urban Agenda.
On the other hand, the amount registered in San Sebastián is 7.5 times higher than the 506.7 euros/m2 in Puertollano , Ciudad Real. Thus, Puertollano is positioned as the municipality with more than 25,000 inhabitants with the cheapest price per square meter in the country. In other words, it is an ideal location to acquire a home.
From CaixaBank they warn that “factors such as the geographical location of the home, its orientation (north or south), influence the appraisal of real estate; if it is well communicated and has access to services, usable square footage, age and condition, communal areas, an elevator or central heating or if it has systems that improve its energy efficiency, among other elements, all influence the valuation.
In short, the price of a home in Spain is determined by numerous factors that must be taken into account. Thus, despite the fact that the purchase price has skyrocketed in recent months, the rate of growth is uneven among the municipalities of Spain. Puertollano heads the list of cheapest municipalities in Spain to buy a home, according to CaixaBank and at the same time boasts an AVE (high-speed train) station.
As stated by 'Tinsa', a real estate data digital valuation and management platform, the average home in Puertollano is made up of a four-bedroom apartment and an area between 90 and 110 square meters. The value of the property is around 68,776 euros and the house has an average age that usually exceeds 30 years.
On the opposite side is San Sebastián. In this municipality in the Basque Country, the average dwelling is a four-bedroom flat with an area between 70 and 90 square metres. Likewise, the age of the property exceeds 30 years. However, the average value stands at 444,167 euros; 6.5 times more than in Puertollano.
Finally, CaixaBank experts estimate that “the rise in housing prices may have some continuity due to the rise in construction costs, aggravated by the war in Ukraine and the bottlenecks in the value chains. The forecasts point to the number of sales falling by just over 10% in 2023 and the price of housing slowing down significantly but maintaining a positive growth rate.