The average price of housing continues to rise in Spain but at a moderate pace. According to data from the Ministry of Development, the average price stood at 1,540 euros/m² at the end of September. This follows price increases of 0.7% quarter-on-quarter and 2.7% year-on-year.
The third quarter of this year is therefore the tenth consecutive quarterly increase. However, current prices are still closer to the lows of the crisis than to the high recorded during the boom. However, on the monthly variation, prices fell slightly in October.
In fact, despite two and a half years of increase, the average price of a square metre has only recovered by 5.8% in the last three years (the lowest level was recorded in the third quarter of 2014, with 1,455 euros/m²). It is still 26.7% below the high recorded in early 2008 (2,101 euros/m²). Before starting the upward trend, the average price spent 26 consecutive quarters in the red.
Quarterly Variations
12 Autonomous communities showed price increases in Q3 with the biggest growth in Madrid (6.5%), Cataluña (6.2%), the Canary Islands (5.5%), and the Balearic Islands (5.4%). Eight communities saw falls in the average price with the most significant being in Murcia (-1.7%), Valencia (-1.4%) and Navarra (-1.3%).
In those municipalities with more than 25,000 inhabitants, the highest prices for free housing were seen in San Sebastian (3,326.9 euros/m²), Sant Cugat del Vallès (3,008.0 euros/m²), Ibiza (3,002.8 euros)/m²), Barcelona (2,992.1 euros/m²), Getxo (2,796.4 euros/m²), Santa Eulalia del Río (2,788.6 euros/m²), Madrid (2,750.2 euros/m²) and Pozuelo de Alarcón (2,741.8 euros/m²).
The lowest prices were registered in Elda (544.9 euros/m²), Villarrobledo (578.5 euros/m²), Puertollano (584.3 euros/m²), Hellín (586.0 euros/m²), Ontinyent (586.1 euros/m²) and Jumilla (592.6 euros/m²).
Fernando Encinar, Head of idealista studies, says that “without doubt, the data is positive, but unfortunately it still speaks of the past situation and does not serve to analyze the current state. The figures refer to the third quarter of the year and are based on data obtained during the summer. The political uncertainty experienced in Catalonia since September has also moved to the real estate market and everything suggests that it could weigh on the good situation the sector was experiencing.”
