Demand for housing remains strong in southern Europe, despite inflation
In spite of European inflation, economic uncertainty and banking turmoil, residential asking prices in Q1 2023 grew across Lisbon, Barcelona, Madrid, Paris and Milan. According to CASAFARI’s Q1 2023 market report for 0-3 bedroom secondary residential properties, asking prices for sale grew by 1.1% on average, led by Lisbon at +3.4%. Meanwhile, rental asking prices rose by 1% QoQ (18.3% YoY) while average rental supply contracted by 4.2%.
How did residential asking prices and sale stock evolve in Q1 2023?
Lisbon, Barcelona, Madrid, Paris and Milan have been experiencing an increase in asking prices for sale 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 asking price for sale 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, reflecting Lisbon becoming the most expensive capital in Southern Europe with an average asking price of €5,149 per square metre, second only to Paris, which 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.
How did rental asking prices and supply change in Q1 2023?
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 asking rents of 5.3% QoQ and an astounding 40.2% YoY (following the evolution of rents in Lisbon in 2023).
Madrid now has an average asking rent of €17 per square metre, Barcelona stands at €22, Paris keeps its high asking rents with €41 and both Milan and Lisbon are 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 analysed through CASAFARI Area Insights. To explore live market data and property trends, sign in to the CASAFARI platform.
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Frequently asked questions
Which Southern European city saw the highest growth in asking prices for sale in Q1 2023?
According to CASAFARI’s Q1 2023 market report, Lisbon recorded the highest increase in average asking prices for sale at 3.4%, reaching €5,149 per square metre. Across the five analysed cities, average asking prices grew by 1.1% over the same quarter.
What were the average asking prices per square metre in Paris, Lisbon, Milan, Barcelona and Madrid in Q1 2023?
In CASAFARI’s Q1 2023 analysis of 0-3 bedroom secondary residential properties, Paris reached an average asking price of €12,707 per square metre. It was followed by Lisbon (€5,149/m²), Milan (€4,969/m²), Barcelona (€4,120/m²) and Madrid (€4,062/m²).
How did residential rental asking prices perform in Lisbon in Q1 2023?
Based on CASAFARI’s Q1 2023 data, Lisbon experienced the steepest rise in rental asking prices among the analysed cities. Average asking rents in the Portuguese capital increased by 5.3% quarter-on-quarter and 40.2% year-on-year, reaching €23 per square metre.
How did housing supply for sale and rent change across the five cities in Q1 2023?
In Q1 2023, CASAFARI recorded sale stock declines in Paris (-13.2%), Madrid (-8.7%) and Barcelona (-2% QoQ), alongside increases in Milan (+5.8%) and Lisbon (+1.3%). Rental stock fell by 4.2% on average across the five cities, driven by sharp drops in Paris (-28%) and Madrid (-7.9%), while Barcelona (+8.9%), Lisbon (+4%) and Milan (+2.2%) gained rental listings.
How can property professionals track asking prices and housing stock across European cities?
Property professionals can monitor asking price series, active stock trends and market distributions across European regions using CASAFARI Area Insights. Developers and data teams can also integrate market analytics using the Area Insights API documentation in English. To access these tools, users can sign in directly to the CASAFARI platform.