Used property prices increased in July
The average price of used property in Spain stood at 1,700€ p/m² in July, a monthly increase of 0.4%.
This increase shows we are seeing prices stabilise and we are leaving behind the large price falls of recent years.
The price in July was 4.6% more than the same month in 2016 and is the 10th consecutive year-on-year increase. It is also the highest year-on-year increase seen since May 2007 when the price increase was 5.4%, according to a report from fotocasa.
“In the first half of the year, the recovery of the market has consolidated and that is adjusting prices. The demand for housing by foreigners has been compounded by the improvement of the economy and the return of financing. Everything indicates that the good economic forecasts for the remainder of the year will allow this reactivation of the real estate sector to consolidate further, although the recovery will be very uneven geographically”, explains Beatriz Toribio, from fotocasa.
The average price of used property in Spain has fallen by -42.4% since it reached its peak in April 2007 when the average was 2,952€ p/m². In this sense, 11 autonomous communities have fallen more than -40% since reaching the maximum price ten years ago. Rioja is the community that has seen the highest price fall (-56.9%), followed by Navarre (53.4%), Castilla-La Mancha (-51.6%), Aragon (-51.4% %), Murcia (-49.9%), Asturias (-46.8%), Comunitat Valenciana (-46.1%), Cantabria (-43.2%), Catalonia (-42%) and Extremadura (-41%).
July by Autonomous Communities
Of the 17 autonomous communities, the average price of second-hand housing increased in nine of them in July. The highest increase occurred in Catalonia and La Rioja, up 0.8% in both communities. This was followed by the Balearic and Canary Islands (0.7%), Andalusia (0.6%) and Extremadura (0.5%).
On the other hand, Navarre is the community with the highest drop in the price of second-hand housing in July (-1%). This was followed by Galicia (-0.6%), Castilla-La Mancha (-0.3%) and Murcia (-0.2%).
Prices
The Basque Country remains the most expensive community in Spain, with an average price of 2,698€ p/m², followed by Madrid (2,321€ p/m²) and Catalonia (2,240€ p/m²). By contrast, Castilla-La Mancha (1,070€ p/m²), Extremadura (1,110€ p/m²) and Murcia (1,150€ p/m²) are the communities with the most affordable second-hand housing prices.
July by Province
As for the evolution of the price of used property by provinces, positive monthly variations were seen in 24. Increases ranged from 1.5% in Santa Cruz de Tenerife and Malaga, to 0.8% in Barcelona.
At the other extreme, 18 provinces saw prices fall. The sharpest drops were in Zamora (-2%) and Pontevedra (-1.2%). Navarre and Cuenca both saw falls (-1%), as did Sevilla (-0.8%) and Cáceres and León (-0.7%).
Prices remained stable in 8 provinces: Valencia, Cantabria, Valladolid, Lleida, Salamanca, Jaén, A Coruña and Ourense.
