Palma de Mallorca saw prices grow 7.90%
The average price of second-hand property in Spain reached 1,705 euros per square metre in February. Compared to the same month in the previous year that represents an increase of 0.22%. When compared to January, it shows a slight fall of 0.01%.
“Recent increases have moderated with similar levels of growth seen throughout the country, although there are still notable differences at the local level given the configuration of supply and demand of residential real estate in Spain,” said Ferran Font, director of studies at pisos.com. He further states that “it was expected that prices would move downwards in line with the slowdown in sales seen so far this year“.
Font also maintains that “access to a first home is very difficult due to the low income of families, which has barely grown in recent years. Additionally, there is some distrust towards the evolution of the economy, an aspect that together with the previous one keeps many potential buyers in the rental market“. Font also points out that “there are barely any replacement customers to fill the gap and that investment buyers have also started to slow, given that profitability is losing appeal and the problems of legal uncertainty remain unresolved.”
Balearic Islands Most Expensive
The most expensive regions in February 2020 were the Balearic Islands (€3,148 p/m²), Basque Country (€2,724 p/m²) and Madrid (€2,631 p/m²), and the cheapest were Castilla-La Mancha (€882 p/m²), Extremadura (€1,011 p/m²) and Murcia (€1,133 p/m²).
The average price per square metre for buying a home in Andalucia reached €1,659 euros. Compared to January, this represents a fall in prices of 0.21%. However, compared to February 2019, prices have increased by 1.16%.
Interannually, the most notable positive variations occurred in the Balearic Islands (6.91%), the Canary Islands (4.06%) and Aragon (3.83%). The most notable falls were recorded by La Rioja (-4.04%) , Asturias (-3.82%) and Castilla-La Mancha (-2.37%).
Guipúzcoa was the most expensive province with 3,161 euros per square meter. Following were the Balearic Islands (€3,148 p/m²) and Vizcaya (€2,684 p/m²). On the opposite side was Cuenca, which closed the month with 736 euros per square meter. Other more affordable provinces were Ciudad Real (€773 p/m²) and Toledo (€797 p/m²). The most notable increases from one year to the next were located in the Balearic Islands (6.91%), Álava (6.56%) and Cuenca ( 5.75%). The steepest declines were seen in Zamora (-7.78%), Jaén (-6.49%) and Ourense (-5.11%).
23 Capitals Saw Prices Fall
The most expensive capital was Donostia-San Sebastián, with a staggering 5,004 euros per square meter. Following were Barcelona (€4,433 p/m²) and Madrid (€3,964 p/m²). Ávila was the most affordable, with a price of 1,043 euros per square meter. Other cheap capitals were Ciudad Real (€1,116 p/m²) and Cuenca (€1,123 p/m²). The most intense increases compared to February 2019 occurred in Palma de Mallorca (7.90%), Vitoria (7.77%) and Huesca (7.76%). The ones that fell the most were Zamora (-7.10%), Barcelona (-6.36%) and Logroño (-5.63%).
