Last week, Tinsa, the largest property valuation company in Spain, published its statistics on prices for both brand new and second-hand homes. According to their analysis, property prices in 26 provinces and 38 provincial capitals exceed the theoretical affordability rate of 30%. This rate refers to the maximum proportion of mortgage payment considered affordable from the overall family income.
According to the Sociological Investigation Centre (CIS), housing is now at the forefront of Spanish people’s concerns affecting mental well-being, birth rates and mobility.
However, Spain’s much talked about housing crisis isn’t just the result of increases in recent years. According to Bankinter, Spain has seen an increase in housing prices close to 56% since its real estate crash in 2014.
This huge price increase over 10 years is not the only reason for the likely worsening of housing crisis for buyers through 2025.
Banks and property experts agree that the Spain’s property market will continue to be one in which demand exceeds supply. This situation will continue to drive up both property purchase prices and rentals.
Factors increasing demand in Spanish property market
Research by Caixa Bank lists these as net job creation (about 400,000 more employed people), wage growth above inflation , strong foreign demand for property, and reduced household debt, plus growing household savings.
The recent drop in rates is also likely to increase demand as access to finance will be easier, which will increase mortgage signings.
A spokesperson for national property agents, Idealista said:
‘These new conditions will encourage a part of the population that until now could not access credit. It will add to an already high demand that will cause new price increases’.
Spain’s most and least affordable areas to buy in 2025
Using the 30% maximum proportion of mortgage payment considered affordable from family income as a guide, here are the most and least affordable areas to buy in 2025.
Lleida, Teruel, Castellon de la Plana and Ciudad Real are the four most affordable provinces with average mortgages costing less than 25% of average family income.
23 provinces exceed the 30% affordability rate including Spain’s five most highly populated areas of Madrid, Barcelona, Valencia, Alicante and Seville.
38 provincial capitals exceed the 30% affordability rate, with Palma, Barcelona, Cadiz, San Sebastian and Malaga standing out as requiring mortgages of almost 60%. Santa Cruz de Tenerife topped the charts with 67%.
Tags: Housing Crisis, Property Prices
Source link : http://www.bing.com/news/apiclick.aspx?ref=FexRss&aid=&tid=6772c10959894d9a9ec13682297b4e29&url=https%3A%2F%2Feuroweeklynews.com%2F2024%2F12%2F30%2Fproperty-market-2025%2F&c=17438440484981885227&mkt=de-de
Author :
Publish date : 2024-12-30 05:21:00
Copyright for syndicated content belongs to the linked Source.
