in

Madrid is still the most expensive community to acquire a home despite the collapse in mortgage interest

Ten years later the photograph is the same. Madrid remains the autonomous community in which the cost of the transaction to acquire a property is higher. This is confirmed by the last study conducted by iAhorro on the evolution of mortgages in Spain in the last decade. The Spanish capital is also the only next to the Balearic Islands, Ceuta and Melilla in which the price per m2 of the house has increased in the last ten years.

Taking the latest data available from the Ministry of Transport, Mobility and Urban Agenda as a reference, the average price per m2 during the first quarter of 2021 in Spain stood at 1,625.4 euros. This data is a 8.56% lower than in the first three months of 2011, when the price per m2 was 1,777.6 euros.

However, “it would be advisable do not postpone the operation too long if we plan to buy a home ”, explains Simone Colombelli, Mortgage Director at iAhorro.

43.44% cheaper mortgages

If we add to this drop in house prices interest rates up to 43.44% lower than ten years ago for taking out a mortgage, the result is that the entire operation for buying a property is up to 99,663.7 euros cheaper on average in Spain than ten years ago.

According to the National Statistics Institute (INE), the average fixed TIN to which mortgages were offered in the first quarter of 2011 was 4.88%, however, the first three months of this year it was 2.76%.

Therefore, a 100 m2 home in 1Q 2021 in Spain at a price of 1,625.4 euros per m2, with a 30-year mortgage and an average fixed TIN of 2.76% has a total cost of 239,189, 93 euros. The same home at a cost of 1,777.6 euros per m2, in Q1 2011, with a fixed TIN of 4.88%, would have cost 338,853.63 euros, that is, 99,663.7 euros more.

Extremadura, with a price per m2 of 833.5 euros, is the cheapest community

The difference between the most expensive and cheapest community in Spain to get a home is 259,747.85 euros. In the first case, we would speak of Madrid, in which the m2 has a value of 2,598.6 euros, so it would be necessary 382,403, 69 euros for a 100m2 property at a fixed rate of 2.76% in the 1Q of 2021. For its part, in Estremadura, with a price of 833.5 euros per m2, a house with the same characteristics would cost 122,655.84 euros.

In the same line, Castilla la Mancha It is another of the regions in which acquiring a property with a mortgage costs less; 128,085 euros. This is, in turn, 100,301 euros less than in 2011, when its price was 228,386.9 euros.

In Navarra, the total average cost for having acquired a property in the first period of this year is 208,743.03 euros, while in 2011 it was 282,524.17 euros.

For its part, a house in Catalonia of 100m2 after interest would have been 112,228 euros more expensive on average in Q1 2011 than in the first three months of this year.

Buying a house earlier this year in Balearics worth 236,340 euros would be worth 347,792.23 euros asking for a mortgage at a fixed interest of 2.76%. This same home in the same period ten years ago would have cost a total of 388,778.12 euros with an interest of 4.88%.

“It is especially striking as some coastal sites capture price increases, especially highlighting the strong potential that Spain presents for the telework structure. These areas will probably continue to arouse the interest of many buyers and incentivize this market “, says the director of Mortgages of iAhorro.

Madrid continues to be the most expensive community to acquire a home despite the collapse in mortgage interest

Elon Musk contributes millions to XPrize contest

Tokyo 2020 Olympic Games: What you cannot miss about the Games on day 2 (Sunday, July 25)