26 February 2016 – Expansión
The residential market is continuing to show signs of stabilisation and is now bracing itself, gradually, for an undeniable improvement. To this end, we have now received official confirmation of the real estate recovery. The news was announced yesterday by the Ministry of Development: house prices increased by 1.8% last year.
It is the first YoY increase in house prices for eight years and the third consecutive quarter of positive growth. The average appraisal value per square metre of free (unsubsidised) homes amounted to €1,490.10/m2 (in Q4 2015), which represents a positive QoQ variation of 1.0%. In real terms, excluding inflation, (unsubsidised) house prices increased by 2.1%.
The average home now costs 29.1% less than in the first quarter of 2008, at the peak of the real estate bubble. On the other hand, compared with the minimums recorded in the third quarter of 2014, prices have now recovered by 2.4%. New homes (those that are less than five years old, according to the Ministry, led by Ana Pastor) became 1.1% more expensive last year, taking their average value to €1,738/m2, whilst second-hand homes decreased in value by 1.8%, to €1,481/m2.
The appraisal value of residential properties is now on the increase in 14 regions, in particular, in the Balearic Islands (5.4%), Madrid (3.4%), La Rioja (3.2%), Cataluña (3.0%), the Canary Islands (3.0%), Castilla y León (2.6%) and Navarra (2.2%). By contrast, Cantabria (-4.0%), País Vasco (-1.3%) and Murcia (-0.1%) are still recording decreases. The highest house prices in towns with more than 25,000 inhabitants were recorded in San Sebastián (€3,133/m2), Getxo (€2,699/m2), Barcelona (€2,553/m2), Ibiza (€2,513/m2), Sant Cugat del Vallès (€2,505/m2), Madrid (€2,504/m2) and Pozuelo de Alarcón (€2,490/m2).
Original story: Expansión (by Juanma Lamet)
Translation: Carmel Drake