The Gap In House Prices By City: Falls Of 10% And Rises Of 3% In 2014

27 January 2015 – Expansión

House prices are evolving at different rates, depending on the region or city that you look at. Whilst in 2014, seven provinces and eight capitals recorded decreases of more than 10%, others experienced increases of close to 3%, according to Tinsa’s IMIE Local Market Index.

Overall, prices declined by 4.5% during the last quarter of 2014, compared with a year-on-year decrease of 4.3% in the third quarter and the fall of 8.3% from a year earlier.

“Although average house prices in Spain began to stabilise a little over a year ago and there has been progressive moderation of year-on-year decreases, the statistics show that some areas have started this stabilisation process more slowly and are still experiencing significant decreases”, says the document.

The gap that exists between cities is very noticeable. For example, whilst in Malaga, prices increased by 4.7% during the fourth quarter with respect to the previous year, house prices in the city of Ávila recorded a year-on-year decrease of 11.7%. “Another seven capitals recorded decreases of more than 10% in 2014. Namely, Huelva and Bilbao (both with a decrease of 11.1%), Almería and Badajoz (both with declines of 10.8%), Córdoba (-10.6%), Oviedo* (-10.4%) and Vitoria (-10%)”, adds the document published by the valuation company Tinsa.

By city, the most notable increases were in: Melilla (+2.3%), Palencia (+1.3%), Palma de Mallorca (+0.5%) and Barcelona (+0.2%). Meanwhile, prices stabilised in Burgos (0.0%). Three capitals recorded decreases of less than 2%: León (-0.5%), Murcia (-1%) and Vigo (-1.7%).

Looking back, Ávila is the capital that has experienced the greatest cumulative decrease in prices since 2007, at 56.1%, followed by Zaragoza and Guadalajara capital, where the decline during the crisis years reached 55.1% and 55%, respectively.

By province, the behaviour of prices in Navarra (-14.1%), Lérida (-14%) and Cuenca (-12.7%) contrasts with the increases in Palencia (+3%), Teruel (+2.8%) and Melilla (+2.3%).

In terms of the data by autonomous region, only two regions have experienced notable price increases: Melilla and the Balearic Islands (by 2.3% and 1.5%, respectively). On the other hand, decreases were recorded in Navarra (-14.1%), Asturias (-9.4%), the Canary Islands, Castilla y Leon and Valencia (all -6.8%) and Murcia (-6.5%).

*Provisional data

Original story: Expansión (by M. G. Mayo)

Translation: Carmel Drake

34