Average second-hand property prices in Spain stood at 1,733 euros/m² in November, a monthly increase of 0.4%, according to data from property portal fotocasa.
The slight increase shows that the price of second-hand housing is stabilising and that we are leaving behind the large price drops witnessed in recent years.
On the annual variation, the price in November 2017 had increased by 4.8% with respect to the same month last year. This makes 14 consecutive months in which the price has increased.
“The real estate market continues to show clear signs of recovery and that translates to prices with increases that we did not see since 2007. Even so, prices are 40% below the highs of the boom years and activity levels and the granting of mortgages are barely comparable,” explains Beatriz Toribio, head of studies at fotocasa.
Regarding Catalonia’s independence troubles, Toribio highlights the slowdown in the growth of prices reflected at the end of October has been mitigated. “Catalonia is still the second autonomous region where prices rise the most, although the pace of growth is still lower than what we were used to,” Toribio says adding that “the effects of the Catalan crisis will take time to be noticed in the statistics.” With elections due this month we will have to wait and see what happens then before anyone can make accurate predictions.
The average second-hand property prices in Spain have accumulated a drop of -41.3% since it recorded its historic peak in April 2007 when it reached 2,952 euros/m². In this sense, 10 autonomous communities have declines greater than -40% since they reached the maximum price ten years ago. La Rioja is the community that has seen the lowest price (-56.3%), followed by Navarra (53.4%), Aragón (-51%), Castilla-La Mancha (-50.5%), Murcia (-48.4%), Asturias (-46.7%), Valencia (-46.2%), Cantabria (-43.5%), Extremadura (-40.9%) and Cataluña (-40.6%).
Prices Increased in 12 Autonomous Communities
In November the average price of second-hand housing increased in 12 communities. The most pronounced increase occurred in Catalonia (2.2%), followed by Murcia (1.6%) and Castilla-La Mancha (1.4%). La Rioja and Castilla y León, both increased by 1.3%.
In Andalucía the average price per square metre is 1,563 euros, an increase of 0.5% over the previous month. The year-on-year increase is 5.9%.
Valencia is the community that saw the prices fall the most in November with a drop of 0.8%. This was followed by Madrid, Cantabria, Asturias and Galicia, all down 0.2%.
The Basque Country remains the most expensive community in Spain, with an average price of 2,723 euros/m², followed by Madrid (2,408 euros/m²) and Catalonia (2,295 euros/m²).
There were price increases in 28 provinces, with increases of 2.8% in Burgos, 2.3% in Cuenca, 1.6% in Barcelona and Murcia and 1.5% in Zaragoza.
On a monthly basis, prices fell in 18 provinces. The sharpest decreases were registered in Huesca (-2.4%), Alicante (-2%), León (-1.3%) and Huelva (-1.1%).
The municipality with the highest price for second-hand housing is Zarautz (4,722 euros/m²). Monóvar, in Alicante, is the cheapest Spanish city, with an average price of 617 euros/m².