Resale prices appear to have stabalised
The average price of resale property in Spain fell by 0.2% in April, when compared to the previous month. The average price per square metre now stands at 1,624 Euros, according to data released by property portal fotocasa. This is slightly different to the figures released by Tinsa last week but the gap between the two quoted figures is small.
On the inter-annual basis the fall is a mere 0.7% and shows that the large price drops we had seen over recent years appear to be gone for the majority of the country.
Beatriz Toribio, from fotocasa Studies, said “The price of housing will continue to perform unevenly for 2016. While in certain areas of the country, prices are stabilising or even recovering, in other areas they are still falling hard. This is a consequence of the crisis experienced by the sector.”
2007 Peak Prices
The average price of second-hand housing has reached a cumulative fall of 45% since the peak of April 2007 when the average price per square metre reached 2,952 euros. Some of Spain’s autonomous communities have seen falls above this average, while 12 communities have seen falls above 40%.
Rioja has seen the largest fall with prices now 56.8% below the 2007 peak, while prices in Castilla-La Mancha are currently 52.8% lower than nine years ago.
In the arguably more popular communities of Valencia, Catalonia, Madrid and Andalusia, prices have fallen between 42 and 47.5%.
Regional Increases
Of the 17 regions of Spain, five saw price increases in April. The largest increase, although slight, was in Aragon where prices went up by 0.3%, while Madrid, Extremadura, the Balearic Islands, and Valencia all saw an increase in the average price of resale property of 0.2%.
While the Balearic Islands were amongst those to see an increase, the Canary Islands saw a slight decrease of 0.9%, while Catalonia saw a fall of 1%.
The Basque Country remains the most expensive part of Spain for resale property with an average price of 2,724 euros p/m². They are followed by Madrid where a square metre will cost you 2,230 euros, and Catalonia where you will need 2,043 euros p/m².
At the other end of the scale are Castilla-La Mancha, Extremadura and Murcia where the average cost per square metre is 1,045 euros, 1,091 euros and 1,137 euros, respectively.
