Business · Companies · 10 hrs ago
Home prices rise across Spain as smaller cities gain ground
Home-buying prices in Spain rose 14.7% in the third quarter compared with a year earlier, while rents rose 3% in September.
The increases come as new households are forming three times faster than homes are being built, leaving a shortfall of about 700,000 homes.
High prices, rising mortgage costs and limited savings are making it harder for some people to buy, but scarce supply is still pushing prices up.
Smaller provincial capitals are taking the lead in price growth, with Soria recording the biggest rise among provincial capitals, at 22.9%.
Price increases are also spreading to suburbs and smaller towns, while rental growth is slowing in major cities such as Madrid and Barcelona.
The housing shortage is keeping prices under pressure, even as demand for buying and renting shows signs of weakening in some places.
Home purchase prices in Spain rose 14.7% in the third quarter compared with a year earlier, according to Tinsa by Accumin.
Smaller provincial capitals are seeing some of the strongest increases, with Soria recording a 22.9% rise.
Prices are also climbing in suburbs and smaller municipalities, including Sagunto, Viladecans and Coslada.
The article says household formation has outpaced new home construction, leaving a housing shortfall of 700,000 properties.
Rental price growth slowed to 3% year on year in September, according to Fotocasa.
- Who
- Home buyers and renters in Spain. Tinsa by Accumin and Fotocasa provided the cited market data.
- What
- Home purchase prices rose across Spain, with some smaller cities recording especially large increases. Rental price growth slowed.
- When
- In the third quarter, purchase prices were up year on year; rental prices were up 3% year on year in September.
- Where
- Spain, including smaller provincial capitals and the outskirts of major cities.
- Why
- The article says new household formation has tripled the creation of new homes in recent years, contributing to a housing shortfall and limited supply.
This story does not have two clearly opposing sides.
Home purchase prices rose 14.7% year on year, according to Tinsa by Accumin.
Rental prices rose 3% year on year, according to Fotocasa.
- National purchase prices
- Up 14.7% year on year in the third quarter
- Soria purchase prices
- Up 22.9% year on year in the third quarter
- Rental prices
- Up 3% year on year in September
- Estimated housing shortfall
- 700,000 homes
- Sagunto purchase prices
- Up 25.7% year on year