House Prices Rise By 9% In Madrid In 1 Year

13 October 2015 – Expansión

Average house prices in Madrid amount to €2,937/m2, which represents an increase of 8.9% compared with a year before, according to a report published last week by the real estate consultancy Aguirre Newman. Despite this increase, house prices in the capital are still 37% lower than their peak in 2007 (€4,657/m2), the year the crisis started and the real estate bubble burst. The consultancy says that the current increases in house prices is being driven by growth in prime areas, given that prices have remained stable in all other areas.

The most expensive neighbourhoods for buying a house in the capital are: Almagro (Chamberí), El Viso (Chamartín), La Piovera (Hortaleza), Goya and Castellana (Salamanca) and Justicia (Centro), where property developments are currently being sold for prices of between €6,500/m2 and €7,000/m2. At the other end of the scale, the cheapest homes in Madrid are found in the districts of Villaverde, Villa de Vallecas and Carabanchel, with prices of between €1,600/m2 and €1,800/m2.

In terms of the municipalities closest to the capital, average house prices are highest in Pozuelo de Alarcón and Majadahonda, reaching up to €3,944/m2. The most economical municipalities are Móstoles and Pinto.

Average prices in Spain

By contrast, Tinsa published another study at the end of last week, which revealed that the price of (unsubsidised) homes decreased by 0.4% in September with respect to the same month last year, which confirms “the stabilising trend in terms of prices”, according to the Local Markets Index. The appraisal company indicated that this is the slowest rate of decrease since March 2008 (-0.3%), which marked the first YoY price fall in the series, which was launched in 2001. Average house prices in Spain have recorded a cumulative decrease of 41.9% since their height. By region, prices in the Balearic Islands and Canary Islands performed the best in September.

Original story: Expansión

Translation: Carmel Drake