Ministry Of Development: House Prices Rose By 2% In Q2

16 September 2016 – El Mundo

The average price of unsubsidised homes amounted to €1,506.4 /sqm in the second quarter of 2016, which represents a positive variation of 2% with respect to a year ago and 0.9% compared with the first quarter of the year, according to the Ministry of Development.

This upward variation represents the fifth consecutive quarter of nominal price rises following 26 quarters of YoY decreases in house prices, which began at the end of 2008.

According to the historical series, the average value per square metre in Q2 2016 was 28.3% lower than the maximum level reached during Q1 2008. On the other hand, prices have recovered by 3.5% compared with their minimum values, reached during Q3 2014.

Second-hand house prices rise by more than new house prices

By house age, the average price per square metre of an unsubsidised home aged less than five years old, i.e. the newest properties, amounted to €1,746.8/sqm in Q2 2016. That represents a YoY increase of 0.8%. In terms of properties that are more than five years old, in other words, second-hand homes, the price amounted to €1,500.2/sqm, up by 2.2%.

The Balearic Islands (5.9%) and Navarra (-2.2%) – poles apart

By autonomous community, the Ministry of Development reported that 10 regions registered YoY increases, led by the Balearic Islands (5.9%), Madrid (4.8%), Cataluña (4.6%), the Canary Islands (2.9%), Extremadura (2.4%), Ceuta and Melilla (2.3%) and Galicia (1.4%).

By contrast, the other regions recorded decreases, led by Navarra (-2.2%), Aragón (-1.9%), País Vasco (-1.7%) and Cantabria (-1.3%).

By municipalities with more than 25,000 inhabitants, the highest house prices (for unsubsidised properties) were recorded in San Sebastián (€3,131.1/sqm), Ibiza (€2,689.8/sqm), Barcelona (€2,656.5/sqm), Getxo (€2,645.3/sqm), Madrid (€2,591.7/sqm), Sant Cugat del Vallès (€2,539.7/sqm) and Pozuelo de Alarcón (€2,538.8/sqm).

The lowest prices in municipalities with more than 25,000 inhabitants were recorded in Elda (€508.0/sqm), Jumilla (€563.6/sqm), Villarrobledo (€569.2/sqm), Ontinyent (€569.4/sqm), Novelda (€574.5/sqm) and Villena (€586.9/sqm).

The average price of social housing amounted to €1,107.8/sqm in Q2 2016, down by 0.4% compared to Q1 2016 and up by 1.2% compared to the same period in 2015.

Original story: El Mundo

Translation: Carmel Drake