The rental market remains tight and has already reached historic levels in Aragon. The price per square meter already stands at 9.3 euros per month on average, up 8.6% in just one year, and even exceeding 10 euros in Zaragoza. Indeed, there are municipalities, particularly tourist ones in the Pyrenees, where there are barely “six or seven accommodations” to rent in the middle of the winter season. and workers are forced to resort to apartments in other neighboring municipalities, with less impact from tourism.
This is one of the conclusions of the latest report from the Real Estate Market Chair of the University of Zaragoza, which highlights that The months of July, August and September were “fantastic”, closing out the third best quarter since 2008.. More specifically, there were more than 4,200 sales and purchases, 14% more than in summer 2023, and more than 15,500 additional operations over the last twelve months.
The Chair also links the rent situation to this rebound in sales. “If someone goes to rent and finds all-time highs and overvalued prices, the only solution they have is to buy and sell.. It’s not easy either, even if interest rates fall,” explained director Luis Fabra.
In parallel, Real estate prices also continue to grow “moderately”, around 3.2% compared to last summer at 1,561 euros/square meter and on average at 136,000 euros.. However, the main “sensor” of the market, namely second-hand housing, has experienced more intense growth in just one year, of 7.1%, and in the capital Zaragoza, it is already around 2,000 euros/meter.
“In all cases, we are seeing a certain rebound in activity and a reactivation of prices. It has been close to 0% for the last 4 or 5 quarters throughout Spain. Fortunately, we are at low rates, but the nine consecutive years of rising prices stand out. We are still below the historic levels of 2006 and 2007,” Fabra stressed.
In new construction, sales increased by 7.7% with “constant demand”, which suggests that 2024 could be the second best year since the bursting of the real estate bubble. Nevertheless, There are worrying data, such as the lack of stocks, which could be corrected in a few years if cost stabilization is maintained.. “There were more sales than permits. If the supply is maintained, we won’t have enough. Even though they often say that they keep seeing cranes in the city, 70% are already sold,” said the general director of Grupo Plaza 14, Fernando Montón.
With this, experts hope to close 2024 higher than 2023 and that this trend continues during the first months of next year. However, they fear that rising prices will deprive people of access to housing. “If the data on the growth of inhabitants and the creation of households are maintained, there is continuity in interest rates and good progress in wages.In other words, in current conditions, nothing leads us to think that the situation will change and that we will not have a good start for 2025,” said the director of the chair.
