Research conducted by idealista.com on a sample of 300.000 dwellings shows that prices of the pre-owned houses in Spain have slowed the slide down by screeching at 7.4%, which equals to a average price of 1.734 €/m2.
Thus, the year ends at drop in the housing prices all over the country. (…) Only two provinces, Lugo and Orense, and sole capital (Lugo) managed to close the year with increases in comparison to the end of 2012.
(…) “The year 2013 does not provide data that could make us think the prices will touch the bottom and the sector recovery is on its way. The stock does not diminish, the national demand reduces and it does not receive financial support. The foreign investor is scarce due to the legal certainty´s volatility and deprived of any guarantee of high profits. By the time these factors do not improve, the prices will continue to be the only lever that could raise the market”, says Fernando Encinar, the research director of idealista.com. (…)
Despite the prevailing trend of reductions in price, there are autonomous communities where average discounts already mark 3.9% in case of Madrid or oscilate between 5% and 6% like on the Balearic Islands and in the Basque Country. The situation stands in contrast with the slumps of 14% recorded in La Rioja, or those of 11% in Castilla-La Mancha and Cantabria.
The sharpest and the slightest falls
Different behaviors result in diverse average prices on the regional, as well as on provincial and capital cities level. Among the autonomous communities, the Basque Country leads for consecutive year, with prices reaching 3.000 Euros per square meter (precisely 2.883), followed by Madrid with 2.641 €/m2 and Catalonia with 1.918 €/m2. At the other end we find Castilla-La Mancha (1.065 Euros), then Murcia (1.088) and Extremadura (1.090).
In the province ranking, two out of three are Basque: Gipuzkoa and Biskay with 3.221 and 2.930 Euros respectively. Then there is Madrid with mentioned 2.641 Euros. Meanwhile the three least expensive provinces are located in Castilla-La Mancha: Cuenca, Ciudad Real and Toledo, yet none of them reaches 1.000 €/m2.
If it comes to the provincial capitals, San Sebastian boasts of 3.922 euros, Barcelona of 3.183 and the Madrid city of 3.107 and they happen to be the most expensive. These houses oppose the ones found in Cuenca (1.199 euros), Ávila (1.165) and Lérida (988), designated as the cheapest capitals in Spain.
Another relevant information provided by the study is that there are already 9 capitals witnessing the housing prices shrinking by more than 40% since the real estate bubble burst, as their houses cost now practically a half of their price before the crisis. They are: Lérida (-53,5%), Zaragoza (-47,6%), Guadalajara (-47,6%), Huesca (-46,8%), Ávila (-45%), Castellón (-45%), Valencia (-44,3%), Cuenca (-43,2%) and Gerona (-42,9%).
In turn, such cities as Lugo (-13%), Orense (-15%), Palencia (-19,1%) and La Coruña (-19,8%) were the only ones not to register falls higher than by 20%.
Source: Cinco Días