Looking For a Flat? Pricing Gap Between Districts Spreads Out to 243%

3/07/2014 – Cinco Dias

In main Spanish cities, the pricing difference between the most and the least expensive districts upsurged since the beginning of recession, as per the latest study by portal idealista.com. At the moment, buying a house in the prime district of Madrid (e.g. Salamanca standing at 4.390 Euros per square meter) turns out to be by 243% more costly than a purchase in the cheapest area (e.g. Villaverde with 1.279 Euros/m2). In Barcelona, the gap is also wide: just compare Les Corts (4.265 €/m2) and  Nou Barris (1.732 €/m2), showing a value discrepancy of 146%.

The spread of prices has been observed since the starting of the crisis, the portal assures. To illustrate, during the real estate bubble peak (Q3 2006), values found in the most exclusive district of Barcelona were only by 45% higher than in the least expensive one, whereas in Madrid (in Q4 2006) the difference posts 68%.

Although since that time the price slump in Barcelona marked 33.3%, these districts performed differently. While Les Corts or Sarriá Sant Gervasi declined by 24.6% and by 33.8% respectively, in Nou Barris (-55.4%) and Sant Andreu (-53.4%) they split in half.

Madrid is in a similar situation with an average since-the-peak fall of 29% and considerable divergence in values. To give an example, in the most luxury areas of the capital – Salamanca, Retiro or Chamartín – the prices declined by between  21.1% and 27.2%, while five districts on the other end saw values tapering down by over a half: Villaverde (-58.3%), Puente de Vallecas (-57.2%), Usera (-54.6%), Latina (-51.8%) and Carabanchel (-51.3%).

 

Original article: Cinco Días

Translation: AURA REE

40