In spite of the inflation rates in Europe, a global economic uncertainty and the recent bank crisis, CASAFARI saw that the real estate market remains stable in Portugal, Spain, France and Italy with a modest growth and increases in prices for both sale and rent.
The scenario for the sales market
Lisbon, Barcelona, Madrid, Paris and Milan have been experiencing an increase in sale prices during the last 12 months. In the first quarter of 2023, the trend was confirmed, with a 1.1% growth on average for the group of analysed cities, with highlights for Lisbon leading with a 3.4% increase and Barcelona, which went up only by 0.1%.
Currently, the average sale asking price per square metre in Madrid is 4,062€, while Barcelona hit 4,120€ and Milan 4,969€. Lisbon once again is among the most expensive cities, with an average price of 5,149€, second only to Paris, that reached 12,707€ per square metre.
When it comes to market stock, Barcelona and Madrid presented significant decreases in assets for sale on a QoQ comparison (the former with -2% and -8.7% for the latter in relation to Q4 2022). Another city that shrunk in market stock was Paris, by -13.2%. Meanwhile, Milan and Lisbon saw new properties available on the market, with increases of +5.8% and +1.3% respectively.
An overview of the rental market
The rental market for these cities also keeps growing, both in relation to the last quarter of 2022 (+1%) and on a year-over-year perspective (18.3%), with highlights to Lisbon, that had the strongest trajectory and presented an increase in rents of 5.3% QoQ and an astounding 40.2% YoY.
Madrid now has an average of 17€ per square metre for rent prices, Barcelona works with 22€, Paris keeps its high prices with 41€ and both Milan and Lisbon tied at 23€.
Talking about the rent supply, the contraction trend continued in the first three months of 2023, with a reduction of -4.2% properties available on the market, on average, for the five cities evaluated. Paris felt the decrease the hardest, with a shrinkage of -28%, followed by Madrid with -7.9%. In contrast, Barcelona added +8.9% to its rental stock, as did Lisbon (+4%) and Milan, with a 2.2% increase in rental properties.
The market report was based on properties from 0-3 bedrooms on the secondary residential market. Interested in receiving our market reports? Get in touch with us: commercial@casafari.com.
Market Report Q1 2023
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