The property market in Murcia is in good health, although experts believe that the threat of a potential recession or population density imbalances will be key to the evolution of the sector in the coming months.
Buying a house in Murcia today is 8.38% more expensive than a year ago. The increase is almost two points higher than that of prices in the home country as a whole and is even more important in the real estate market of the capital. If in the province as a whole it is possible to find a house of 90 square meters for an average price of just over 100,000 euros, in the city of Murcia the same construction can cost more than 125,000 euros.
According to data from the latest quarterly sales price report prepared by pisos.com, the price of second-hand homes in the region reached €1,126/m2 last September. Meanwhile, prices in the capital rose by more than 15% compared to the same month of the previous year, reaching a record €1,392/m2.
However, the increases have not diminished buyer interest in the region. With a total of 1,883 sales transactions completed, data from the National Institute of Statistics ranks July as the best month since the housing bubble burst in 2008. And there’s more. In the first six months of the year, more than 11,400 operations were carried out in the province as a whole, of which 9,495 related to second-hand homes, compared to 1,918 to new construction. The evolution of the market represents a growth of more than 17% compared to the same period of the previous month, and is almost 26% higher when we compare the data with 2019, the last year before the pandemic.
In the words of Ferran Font, director of studies at pisos.com, “Second-hand homes continued their upward trend in the third quarter of the year,” explaining that “residential homes moved with margins of limited rise if we assume reference inflation , supported by a very active demand looking for opportunities. However, the expert more than likely sees a slowdown in operations that could directly affect prices: “it is to be expected that with the recent interest rate hikes announced by the European Central Bank have been put on the table, the last part of the year is accompanied by a slight delay (…). The possible arrival of an economic recession will limit the momentum of a market that, faced with more expensive mortgages and buyers more focused on savings, will slow down.
However, the evolution of prices – which has brought major capitals back to pre-bubble levels in recent months – will not be the same in all areas. The expert assures that the imbalances in terms of population density can be reflected in the price curve. “The most powerful cities will hardly change, while others will have a downward path,” explains Font.
Being a renter is more expensive today than it was a year ago in all provincial capitals and, as Font explains, the rental market, “is a faithful reflection of the skyrocketing inflation our economy is experiencing.” Murcia is no exception. While it is true that prices in the capital have increased by about 4% over the past year, in the province as a whole they have hardly changed at 0.10% compared to September last year.
According to data from pisos.com’s quarterly rents report, a house of 90 square meters in the capital of Murcia can be rented for around 768 euros per month, a figure significantly higher than what is paid on average in the province as a whole where , the same property, is valued at just over 517 euros per month.
Experts believe that the increase in mortgage prices or the disappearance of market demand from buying to renting, driven by inflation, among other things, will also be reflected in prices in the coming months. While moderation will be the general tone in many parts of the home country – a trend that is already starting to be noticed in some cities – the sales situation is adding pressure in the major capitals and, as Font explains: “in cities like Madrid , Barcelona, Valencia or Palma, we see how the increases are much greater and they do not moderate like the rest ».
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
