The price of used housing in Spain registered a small year-on-year increase in 2017. Prices rose 2.4% in the last 12 months to reach an average of 1,586 euros/m².
Fernando Encinar, head of idealista studies, said “If 2016 was a turning point in the evolution of the market, in 2017 we would have to talk about the year of normalization in terms of prices, transactions and mortgages.”
Prices have gone up throughout the country but at differing speeds depending on where you are. The big markets, the islands and the capitals of Madrid, Barcelona, Malaga and Valencia, are pushing up used housing prices. However, in many interior areas of the country the increases are slower and smaller.
With regard to sales, although 2017 promised to be a very positive year for the market, the latest official figures seem to confirm that fears of Catalan uncertainty were justified. The real estate market in that community slowed considerably in terms of volume of transactions and although for the moment that tension has not been transferred to the national market which continues to grow in two-digit percentages, it will undoubtedly affect the national averages.
On the other hand, the granting of new mortgages continues to grow at a good pace, with significant monthly fluctuations, but with an annual increase of 11% that could bring the year-end figures close to 315,000 mortgages granted. In addition, fixed mortgages have consolidated to make up 40% of the total, motivated by the historically low prices of this type of loan and an upward forecast of the Euribor in the medium term.
“Everything indicates that during 2018 the real estate market will continue its positive evolution, with increases in the number of transactions and the granting of mortgages, and with a probable rise in prices due to the scarcity of new construction products in large cities”, Encinar added.
Eight communities have seen used housing prices increase during 2017. The biggest increase was recorded in the Balearic Islands, where owners now request 25.3% more for their homes than a year ago. This is followed by increases in Catalonia (9.5%), the Canary Islands (8.4%), Madrid (7.1%), Aragón (2.3%), Valencia (1.9%), Andalusia ( 0.8%) and Euskadi (0.5%). On the opposite side are price falls in Navarra (-4.8%), Asturias (-3.2%) and Castilla La Mancha (-2.4%).
The Community of Madrid is the most expensive, with an average price of 2,544 euros/m². They are followed by Euskadi (2,519 euros/m²), the Balearic Islands (2,472 euros/m²) and Catalonia (2,082 euros/m²). On the opposite side of the table we find Castilla La Mancha (897 euros/m²), Extremadura (932 euros/m²) and Murcia (1,019 euros/m²), are the cheapest communities.
23 provinces have seen used housing prices grow over the last 12 months. The highest increase was recorded in the Balearic Islands (25.3%), followed by Barcelona (14.6%), Las Palmas (11.8%) and Malaga (10.9%). Below 10%, yet still positive, were Lleida (9%), Madrid (7.1%) and Girona (5.4%). Soria, on the other hand, suffered the most significant drop with a year-on-year variation of -7.4%. It was followed by Ávila (-6.8%) and Zamora (-6.7%).
The ranking of the most expensive provinces remains unchanged, led by the Basque provinces of Guipúzcoa and Vizcaya. They have average costs of 2,760 euros/m² and 2,591 euros/m², respectively. Coming next are Madrid and Barcelona, both with an average price of 2,544 euros/m².
Toledo is the most economical province (770 euros/m²), followed by Ávila (801 euros/m²) and Ciudad Real (840 euros/m²).
There were 30 capitals with positive year-on-year variations on used housing prices. Palma saw the most significant with an increase of 29.1%. It is followed by the increases of Malaga (16.7%), Madrid (12.5%) and Las Palmas de Gran Canaria (11.4%). On the other hand, Soria saw the largest reduction (-8.3%), followed by Ávila (-6.9%) and Almería (-5.1%).
Barcelona remains the most expensive Spanish capital (4,284 euros/m²), followed by San Sebastián (4,052 euros/m²) and Madrid (3,285 euros/m²). In fourth place is Bilbao with a price of 2,871 euros per square meter. On the opposite side of the table we find Lleida, the cheapest capital, with a price of 921 euros/m². Next was Ávila with an average price of 928 euros/m². They were the only capitals with prices below one thousand euros per square meter.