As we enter the third quarter of 2016 (already?) Spanish property prices appear to have stabilised and actually show a slight decline.
Compared to the previous quarter, prices fell by 1.4% in Q2 leaving a square metre of resale property at a cost of 1,531 euros. On a year-on-year basis the decline is slightly larger at -3.1%.
The report, released by property portal idealista, shows slight declines in most areas of the country, and the increases we have been seeing in the major cities also seem to have abated.
Fernando Encinar, head of research at idealist, says “Although the pace of increases in major markets has slowed, trends are maintained and we can still speak of a two-speed recovery: prices continue to fall in many domestic markets while showing an upward trend in places such as Barcelona, Malaga and Madrid.”
In the country’s autonomous communities only four recorded price increases in Q2: The Canary Islands, Balearic Islands, Madrid and Andalusia saw prices increase. Also, there were slight increases in six provinces and 16 capitals.
Winners and Losers
Barcelona saw prices climb slightly with average prices up 1.6% over the previous quarter, leaving a square metre at a cost of 3,533€. Year-on-year, prices in the Catalan capital have risen by 7.3% over the last 12 months. However, since the all-time high recorded in Q1 of 2007, prices have fallen by 25.3%, although they are currently 19.5% higher than the post-crisis low recorded in the Q3 2013.
Resale house prices in Madrid finished the second quarter 1.2% down from the previous quarter to stand at 2,866 €/m². In annual terms Madrid actually shows an increase of 2%. As with Barcelona, the prices in Madrid are still way below the all-time highs having fallen 29% since 2007, and they have recovered from the post-crisis low of Q4 2014, being 6.4% higher.
In Valencia prices have risen 1% during Q2, on the quarterly basis meaning a square metre of property will now cost an average of 1,486 euros. Year-on-year, the prices in Valencia are 3.5% higher than they were last year. In Valencia the cumulative fall since the highs reached in Valencia city in Q2 2007 amount to a drop of 47%. However, as with other major cities prices have recovered from the low of Q3 2014 being 6.1% higher.
In Malaga property prices have risen by 1.7% on a quarterly basis, while in Seville the increase is subtle at 0.4%. All other markets saw prices fall.
In Zaragoza the decrease is 2.3%, in Bilbao the fall is 1.4% while those in Valladolid have seen prices fall by 0.6%.
The capital recording the biggest increase was Lleida where prices went up by 2.6%, followed by Toledo which saw a 2.2% increase, and Pontevedra which recorded an increase of 1.7%.
Palencia was the capital to suffer the worst fall with prices falling by 3.6% when compared to the previous quarter. It was followed by Albacete (-3.4%), Huesca (-3.1%) and Alicante (-2.9%).
