MADRID, March 11 (Xinhua) -- The average house price in Spain rose by 3.7 percent in 2021, according to data published by the country's National Institute of Statistics (INE) on Friday.
INE highlighted that the cost of new builds rose by 4.6 percent -- the lowest increase since 2014. Meanwhile, the price of second-hand houses increased by 3.6 percent.
Carlos Balado, Director of Eurocofin and a professor at OBS Business School, told Xinhua that the residential real estate market is in a balanced phase, with moderate and sustainable growth in new construction.
This is positive in both economic and social terms, he said.
"Total real estate activity is expected to stabilize at around 550,000 transactions this year, with 100,000 new homes, which is in line with structural demand," he explained.
The highest numbers of house sales and new builds are in Spain's main cities and tourist areas.
However, foreclosures on habitual residences grew by 57.4 percent in 2021 -- the highest rise since 2014, according to the INE.
Balado also warned that in 2022 house prices will depend on the cost of raw materials and the rate of inflation, which is currently rising due to increased energy costs. ■