With the increase in property prices in the cities, buying a property in these areas is complicated and many are forced to buy flats in the outskirts. What do experts think about buying properties and the prices in the outskirts? Although prices generally tend to be lower than in large cities, such as Madrid or Barcelona, property values in metropolitan areas have also increased over the last few years.
"Overall, we have seen price rises due to several key factors. Ample demand and a shortage of supply of second-hand and new-build homes, coupled with an extensive network of infrastructure and urban developments, and a generally lower price point than in large capital cities, promote the attractiveness of living in metropolitan areas," highlights Lorena Andrea Zenklussen, CEO of Comprarcasa España.
This demand has contributed to a general increase in house prices in metropolitan areas. In August this year, the average house price in these areas rose by 7% compared to the same month last year, according to the 'Tinsa IMIE General and Large Markets' index.
Sources at Sociedad de Tasación tell us that house price behaviour differs depending on the segment and geographical area. "In general terms, house prices in the first half of 2023 have continued to rise; however, with less accelerated annual growth than that recorded at the end of 2022".
For new builds, there are more pronounced upward pressures on prices than in second-hand housing, reaching €2,809/m2 in June (with a year-on-year increase of 6.4% compared to the 7.1% increase recorded in December 2022). This behaviour is mainly due to the shortage of supply that continues to prevail, which is insufficient to meet the current demand. "A trend that is more accentuated in those cities that are economic, tourist and population poles of attraction, such as Madrid or Barcelona".
Madrid suburbs
Analysing Madrid, Sociedad de Tasación highlights that it is the third city where new home prices have grown the most in June 2023 (€4,269/m2), with an increase of 7.6% year-on-year, only exceeded by Palma de Mallorca and Malaga, both with 8.2%. As with the Spanish average, this growth rate has slowed down in the first half of 2023, as in December 2022 it was growing by 8.5% year-on-year.
In the suburban towns, new house prices also increased over the last year (5.2% year-on-year), although at a considerably slower rate than in the capital, to reach an average unit price of €2,210/m2.
Majadahonda stood out for being the town with the highest growth in new housing in June 2023 (8% per annum), and Pozuelo de Alarcon for recording the highest unit price (€3,343/m2).
Comparing this with the figures of a decade ago, all the suburban towns have seen new house prices increase by more than 15%, and this is even more pronounced in the case of the town of Madrid, where the average unit price has risen from €2,805/m2 in June 2013 to €4,269/m2 in June 2023.
Barcelona's metropolitan areas
Barcelona remains the provincial capital with the highest new home prices in Spain (€5,047/m2) – a year-on-year increase of 5.9% – ahead even of Madrid (€4,269/m2), which is in second place. All Barcelona city's districts recorded year-on-year increases of more than 5.5%, with Sarriá San Gervasi having the highest unit price (€7,727/m2).
"On the other hand, the differences are more notable in the metropolitan area of Barcelona, where annual growth rates range from 2% in San Just Desvern to 5.5% in Castelldefels. San Just Desvern, however, is the town with the highest unit price on the outskirts of Barcelona (€3,100/m2)".
Sociedad de Tasación points out that if we also compare the current figures with those recorded a decade ago, as in the case of Madrid, all the towns on the outskirts of Barcelona have experienced increases in the price of new housing of over 8%.
More transactions in the outskirts
The Comprarcasa expert believes that buying homes on the outskirts of cities is becoming more and more frequent, especially since the pandemic, "demand is leaning towards what we call "dormitory towns". Along with the country's capitals and large cities, Mostoles, Alcala de Henares and Torrejon are among the most popular places to buy a home".
Forecasts
Lorena Andrea Zenklussen expects the demand for housing in these areas to continue for the foreseeable future. While rising interest rates have affected transactions, the shortage of land and housing supply in the big cities means that demand has paradoxically slowed down little. "The impact of inflation also influenced behaviour not only in terms of transaction volume but also about prices, although, as we have said, it may be less pronounced in these areas".