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Cost of Urban Land Increased 5.3% in Q1

5.4 million m² of land sold in Q1

Urban land totalling 5.4 million m² sold in Q1

The average price of urban land showed an annual increase of 5.3% in the first quarter of 2016, to stand at 157.7 euros per m², according to data released by the Ministry of Public Works. When compared to the previous quarter, the increase is 3.9%.

When looking at the cost in municipalities of over 50,000 inhabitants, the average price per square metre increased by 1.4% year-on-year, reaching 308.5 euros.

In terms of the highest prices in municipalities of over 50,000 residents, Madrid was the most expensive with a rate per square metre of 508.9 euros, while in Barcelona the cost is 397 euros. The Balearic Islands saw costs increase to 330.1 euros per square metre.

The lowest average prices per square metre of urban land in cities with over 50,00 inhabitants were recorded in Cantabria (105.5 € p/m²), Tarragona (111.8 € p/m²) and Asturias (Principality of) (116,7 p/m²).

During the first quarter of 2016 the number of urban land transactions was 3,716 which is actually a 12.4% decline when compared to the previous quarter (Q4 2015 4,242 transactions). However, on the annual basis, comparing to Q1 2015 (3,465 transactions), transaction numbers increased by 7.2%.

Municipalities by Population

In the smaller municipalities, those with 1,000 inhabitants, or fewer, there were 284 urban land transactions in Q1, a 2.1% fall when compared to Q1 in 2015.

Municipalities with between 1,000 and 5,000 residents saw 770 land plots sold, also a decrease with an annual fall of 6%.

Cities with a population between 5,000 and 10,000 inhabitants recorded an average of 625 urban land transactions, registering an annual fall of 11.1%

In contrast, municipalities with a population from 10,000 to 50,000 inhabitants saw an annual increase of 18.4% to 1,252 transactions.

In the larger cities, with a population above 50,000 the increase was even bigger with 785 transactions representing a 31.7% increase over the first quarter of 2015.

Area and Cost

The total surface area of urban land sold in the first quarter of this year totalled 5.4 million square metres, representing an increase of 33.8%, when compared to the first quarter of 2015.

The total cost of the land amounted to 724.2 million euros. Comparing to the first quarter of 2015, this represents an increase of 45.6%.