The price of housing rises 1.1% in May and rebounds 8.4% in the last year, according to Tinsa

MADRID, 6 Jun. (EUROPA PRESS) -

The price of housing became 1.1% more expensive in May compared to the previous month and rose 8.4% in relation to the same month of 2021, according to data published this Monday by Tinsa, which highlighted that the price housing already accumulates 11 consecutive months of year-on-year increases "of increasing intensity".

Capitals and large cities were the ones that registered the highest monthly rise in housing prices in May, 1.2%, followed by metropolitan areas (1.1%); the rest of the municipalities (1%); the Mediterranean coast (0.2%) and the islands (0.1%).

The director of the Tinsa Studies Service, Cristina Arias, highlighted that in May the momentum in prices was sustained in the main centers of activity. "The groups of capitals and large cities and metropolitan areas, which were the ones that took the longest to recover pre-pandemic levels, are the ones that grew most intensely in May," she added.

In any case, Arias has warned that the persistence of inflation will erode the purchasing power of families and will tighten the granting of mortgages. This, together with the rise in rates by the central banks, "would have an impact on housing purchase decisions, slowing down demand and thereby softening the increase in residential product prices", assured the director of the Research Service of Tinsa.

In year-on-year values, that is, compared to May 2021, all areas show significant increases in prices. The greatest rise, of 8.9%, corresponds to the metropolitan areas. They are followed by the rest of the municipalities (8.8%); capitals and large cities (8.2%); the Mediterranean coast (6.8%) and the islands (4.7%).

Since the low recorded after the financial crisis, in February 2015, the average price of new and used housing has increased by 31%. In the case of capitals and large cities, the increase is 37.5%, while in metropolitan areas the evolution of prices is 30.2%.

Compared to the peak of 2007, prices are down 21.9%. The gap is greatest on the Mediterranean coast, where house prices remain 33% lower than in 2007.