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Used House Prices Down 30% in 15 Years

Spanish property prices are down 30% since 2005
Price of Spanish property for sale down 30% since 2005

Property prices in Spain down 30% since 2005

The cumulative price of housing for sale has risen in Spain by 16% in the last 5 years, but has fallen by -17% in 10 years and by -30% in the last 15 years. This is according to a report from fotocasa which was based on the prices of housing for sale in December of the last 15 years.

The price of second-hand housing has been increasing uninterrupted from October 2016 to the end of 2019. This is likely as a consequence of the economic recovery following the financial crisis. This could explain why the cumulative price has increased by 16% compared to the previous ten years. At an annual level we closed 2020 with slight increases caused by the great demand for sales that has been strongly awakened after confinement and mobility restrictions, so we could continue to see increases in the price of second-hand housing the next few months if this great demand continues“, explains Anaïs López, Communication Director of Fotocasa.

Looking at prices paid for a home for sale in 2015, the average price per square meter has increased by 16% nationally (from 1,619 euros/m² in December 2015, to 1,876 euros/m² in December 2020). Thus, 5 years ago (2015) the average price of a home of 80m² was 129,545 euros, compared to the 150,073 euros that was the average in Spain in 2020.

The Balearic Islands Saw Biggest Price Rises

Across the autonomous communities that have seen an increase in the cumulative price of housing for sale in the last 5 years, three of them exceeded the national average increase of 30%, according to the Fotocasa study. Buyers from the Balearic Islands (+51%), Madrid (+39%) and the Canary Islands (+38%) saw the average price of a home rise the most during 2020.

Three autonomous communities have seen the cumulative price of housing for sale fall since 2015 (5 years) and are: Galicia (-2.6%), Castilla y León (-2.1%) and Asturias (-1.2%).

In Andalucía, prices have fallen by 28% in the 15 years to 2020. In the decade from 2010 to 2020, prices in the community fell by 15%. However, things turned around and between 2015 and 2020 prices increased by 16%.

In 2005, the average price for an 80m home for sale in Andalucía was 183,840 euros (national average was 214,774 euros). By 2010 this had fallen to 154,711 euros (national average was 180,932 euros), and by 2015 had plunged to 114,038, below the national average of 129,545 euros. At the end of 2020 the average 80m² home had rebounded slightly to reach 131,936 euros (national average is 150,073 euros).

Provincial Capitals

Palma de Mallorca is the only city in Spain whose cumulative increase in the price of a home is greater than 50%, specifically, the December 2020 price is 58% more than in 2015, but it has barely increased (by 0.1%) compared to 2019.

For a house of 80 square meters for sale in Palma de Mallorca, 151,880 euros was the average price paid 5 years ago (1,899 €/m² in 2015), while in 2020 the average price 239,558 euros (2,994 €/m²in 2020).

The ten cities with the highest cumulative sales increases in Spain in the last 5 years (since 2015) are: Palma de Mallorca (58%), Madrid Capital (42%), Málaga Capital (40%), Las Palmas de Gran Canaria (36%), Donostia – San Sebastián (35%), Valencia Capital (32%), Girona Capital (27%), Barcelona Capital (27%), Vitoria – Gasteiz (22%) and Pamplona / Iruña (21%).

The cities with the most significant cumulative decreases in the price of housing for sale since 2015 are: Teruel capital (-12%), Soria capital (-7.5%), Zamora capital (-6.1%), Ávila capital (-4.9%), Jaén capital (-3.4%), Almería capital (-2.0%), Ciudad Real capital (-1.8%), Huesca capital (-0.8%) and Oviedo (-0.02%).