Home sales in Spain rose more than 6% in 2022, but the market cooled off later in the year

The purchase and sale of VIVIENDA homes grew by 6.1% during 2022 to reach 719,680 units -the highest figure in 15 years- according to the General Council of Notaries.

Prices rose 7.2% compared to 2021 with costs of €1,615 per m2.

The granting of new mortgages for the purchase of housing increased by 2.8% year-on-year in 2022 but the Council noted that as the past year progressed, the increase in interest rates and the economic situation impacted the market.

There were substantial variations across regions in property sales totals, with tourism-related areas getting the biggest boosts.

The increase reached double digits in the Canary Islands (26.9%) and the Valencian Community (14%).

The increases in Illes Balears (7.4%) also stand out; Asturias (6.6%); Murcia (6.6%); Aragon (5.9%); Catalonia (5.4%) and Andalusia (5.4%).

On the contrary, housing transactions fell in 2022 in Cantabria (-3.8%), Madrid (-1.1%) and La Rioja (-1%).

Despite the fact that Madrid is negative on sales, it monopolizes the highest price increases with 12.2% followed by Murcia (11%); Canary Islands (10.4%) and Valencian Community (10.3%).

Regarding the most sought-after properties, the sale of apartments increased by 7.8% to 548,631 operations, while single-family homes advanced only 0.7% to 171,049 units.

New mortgage loans to purchase a home grew by 2.8% in 2022 to 355,470 operations and their average amount increased by 3.8% per year, standing at €153,357.

The Great Council of Notaries affirms that one of the trends last year was the progressive cooling of the real estate market.

In fact, sales went from growing 22.8% year-on-year in the first quarter of 2022 to falling 10.6% in the fourth quarter, in a context marked by the rise in interest rates and the economic situation.

Prices followed the same direction, moderating the increases from 11% in the first quarter of the year to 3.5% in the last quarter, and coming very close to zero in December.

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