House prices rose 3% in 2021 with the Balearic Islands leading the way
The cost of construction of new construction has registered an increase of 15.6% in the last year, up to 2,551 euros per square meter. Despite the price boom, the Real Estate Confidence Index grew to 53.1 points out of a hundred. Housing does not escape inflation. The average house price registered an increase of 3% in 2021, up to 2,551 euros per square meter per month, according to the Real Estate Sector Trends Report published by the Appraisal Society. In turn, it has registered a semi-annual variation of 2.8%. By autonomous communities, all regions have recorded annual increases, the most pronounced has been that of the Balearic Islands, where the price of new housing has risen 4.1%. On the other side of the scale is Extremadura, where housing has registered a price increase of 4%. The price boom in the Balearic Islands was joined by Madrid and Barcelona, which registered annual increases of over 3%. In the rest of the Autonomous Communities, the increases have been between 2% and 3% year-on-year. By province capital, Barcelona ranks as the most expensive city with 4,630 euros per square meter, followed by Madrid, with a price per square meter for new homes of 3,802 euros, and San Sebastián, with 3,757 euros per square meter per month . The study also highlights the increase in real estate transactions that have registered an increase of 42.2% in the new first months of 2021 with respect to the values registered in the same period of 2020 and of 21.6% with respect to the same period 2019, prior to the pandemic. For its part, home mortgage concessions have increased during the same period by 15.1% compared to 2019 and 23.3% compared to 2020. In an inflationary context, the cost of construction of new construction has risen by 15 , 6% in the last year, up to 1,155 euros per square meter. Despite the rise in prices, the Real Estate Confidence Index of the appraiser has reached 53.1 points out of one hundred during the fourth quarter of 2021, the second consecutive quarter being that this indicator exceeds fifty points, in addition to accumulating five periods of rises after registering its lowest value in 2020, with 40.8 points. “It is true that the pandemic has been able to alter the length of the cycle, due to the impact on numerous macro and micro variables that are key to the demand and supply of housing, but let's be cautious, cycles exist, and when historically we have questioned their existence, the consequences almost take the financial system ahead ", says Juan Fernández-Aceytuno, CEO of Sociedad de Valuation. The study calculates that, currently, Spaniards would have to allocate 7.8 years of their full salary to buy a home. The indicator has registered various increases throughout 2021, ranging between 7.4 years during the first quarter and 7.8 at the end of the year.
The purchase of housing by foreigners sweeps the Balearic Islands
Foreigners are rushing to buy homes in the Balearic Islands. According to data from the General Council of Notaries published, sales to the public from outside Spain soared 81.5 percent in the second half of 2021, making the archipelago the leading community in this respect.
Regarding average home prices, in the Balearic Islands they grew by 9.3 percent in the second half of 2021, to...
The reference value of the Cadastre, Law 11/2021 on measures to prevent and fight against fraud
his law came into force on July 11, 2021 but it was not applied until January 1, 2022 that the new reference value of the cadastre is applied, this being the tax base for taxes such as ITP, inheritance tax or donations.
It is no longer the real value of a property that determines the taxable base of these taxes, but its market value, which is determined from the real estate reference...
Compensation for termination of the lease Art. 34 of the LAU.
«BOE» no. 282, of 11/25/1994. Law 29/1994. of November 24, of Urban Leases
Entry into force:
01/01/1995
Article 34. Compensation to the tenant.
The termination due to the expiration of the conventional term of the lease of a farm in which during the last five years a commercial activity of sale to the public has been carried out, will give the lessee...
Holiday rental licenses in the Balearic Islands.
On Friday, February 18, the Balearic Government issued Decree Law 3/2022, of February 11, on urgent measures for the sustainability and circularity of tourism in the Balearic Islands, in which, among many measures, there is a moratorium or prohibition of new tourist accommodation places during the next four years.
In the first additional provision, the suspension of the acquisition of...
"If Palma limits the rental price, a part will be paid with black money"
Palma City Council's claim to promote effective control of housing rental prices creates the risk of promoting the circulation of black money in the real estate market. This is how the employers' organization Pimem considers it, and it does so by appealing to a specific case: if the maximum amount that the owner can charge his tenant is 900 euros, there will be situations, according to...
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The sale of homes in the Balearic Islands returns to the figures prior to the 2008 crisis
The Balearic property market is undergoing a revolution in many ways. While only 1% of rental homes in Palma fall below 600 euros, the sale of homes registered its best month of November since 2007, with figures close to the years prior to the global crisis. In the eleventh month of 2021, the Islands recorded 1,496 operations to buy and sell homes. Compared to the same month a year ago,...
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Why is a property better sold with a VIRTUAL TOUR?
On many occasions we have to sell a property that is inhabited and every time we have a client, they want to see the house to position themselves and see if it can fit their needs.
This action causes two situations:
The most cumbersome is for the inhabitants of the house, since they have to show their tidy house to each client that comes with the real estate agency. If the...
Why are houses in Mallorca so expensive?
The builders point out three factors mainly
Access to housing is one of the main problems that the citizens of Mallorca have. Faced with this situation, many people wonder why homes on the Island are so expensive, compared to those sold on the Peninsula.
The manager of the Balearic Builders Association, Sandra Verger, explains that the...
REU receives the award for portal of the year in Spain
REU has been nominated in the Real Estate Portal of the Year category in Spain (Balearic Islands). We have been chosen as the winners of 2021/22. This recognition is an honor and a reward for the efforts made throughout the pandemic to improve the services we offer to our partners and customers.
During the awards process, more than 100,000 companies and corporate...
What is the Okupa movement and how can we protect ourselves?
Okupa is a movement that began in the 70's that seek the opportunity to forcibly and illegally invade an abandoned apartment, chalet or building. In Europe this type of people is very common, more than everything in Spain due to the difficult situation of acquiring a private...
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