Second hand property prices in Spain registered a slight increase in August, rising 0.4% to reach an average of 1,697 euros per square metre. Looking at the costs last August, the year-on-year increase is +9.2%, according to data from idealista.
Property prices appear to have stablilised following years of significant increases. We are still seeing ups and downs across the country but only very small variations month-to-month. This is not suggesting that prices have peaked and are about to fall nationally, rather that they were so low following the meltdown that significant gains were needed to restore prices to normal levels.
The average price fell in six communities, with Navarra suffering the most as prices fell 1.2%. Other communities to suffer price drops were Extremadura (-0.7%) and Cantabria (-0.3%). On the other hand, the largest increase was seen in La Rioja where prices went up by 1.4%. Prices also increased in the Canary Islands (0.8%) and the Balearic Islands (0.7%).
Madrid remains as the most expensive community with an average price per squre metre of 2,934 euros. The next most expensive is the Balearic Islands where the average used property costs 2,686 euros/m², followed by Euskadi (2,543 euros/m²).
At the cheaper end of the table we find Extremadura (919 euros/m²), Castilla La Mancha (936 euros/m²) and Murcia (1,035 euros/m²).
In Andalucia, the cost of an average square metre increased by 0.3% compared to the previous month, to reach 1,507 euros.
28 provinces saw prices rise in August, when compared to the previous month. Las Palmas experienced the greatest increase (1.8%), followed by Tarragona (1.7%), Lleida (1.6%) and La Rioja (1.4%). The biggest falls, however, occurred in Palencia where owners ask for 1.9% less for their homes. Prices also fell in Teruel (-1.4%) and Navarra (-1.2%).
The ranking of the most expensive provinces is led by Madrid with 2,934 euros/m². In second place is Barcelona (2,823 euros/m²) and then Guipúzcoa (2,802 euros/m²).
Ávila is the most economical province with a price of 796 euros per square meter. Other more economical provinces include Toledo (823 euros/m²) and Ciudad Real (871 euros/m²).
The average cost per square metre in the province of Málaga increased by 0.8% in August to reach 2,069 euros.
During the month of August 35 capitals saw used-property prices increase. The most pronounced rise is that experienced by Las Palmas de Gran Canaria, where the expectations of owners grew by 3.2%. In Lleida, the increase was 2.7%, while in Granada it was 2.6%. In Madrid, prices increased by 0.8% and in Barcelona by 0.1%. Santa Cruz de Tenerife, on the other hand, marked the biggest drop this month (-4%), followed by Soria (-1.7%) and Huelva (-1.6%).
Barcelona is still the most expensive city in Spain, with with an average price of 4,392 euros/m², followed by San Sebastián (4,306 euros/m²) and Madrid (3,829 euros/m²). Avila, on the other hand, is the most economical, with an average square metre costing 933 euros, followed by Lleida (1,006 euros/m²) and Huelva (1,046 euros/m²).
In the city of Málaga, the average cost increased by 1.3% in August, reaching 2,213 euros per square metre. This is only 12.2% lower than the maximum of 2,512 euros, which was seen in the second quarter of 2007.