Q1: Land Values Fall 10% to a Decade Minimum

17/06/2014 – Expansion

In the first quarter of 2014, land prices delined by 10% in comparison to the same period a year before and stood at 141.5 Euros per square meter, the lowest value registered over the past ten years, as the Ministry of Development told.

The new drop-off accumulates a 50% contraction since the maximum 285 Euros per square meter from the Q3 2007, just before the housing bubble burst.

In quarterly terms, the depreciation showed 4.3%.

The collapse reaches 26% in case of urban land of over 50.000-inhabitant municipalities posting now 220.8 €/sqm.

Five regions noted down year-on-year increase in plot values. In Andalusia, they shot up by 20%, in the Balearic Islands by 3.5%, Cantabria by 10%, in Galicia by 9.2%, while in Murcia by 19.4%.

On the other side, the prices dipped down by 49% in Asturias, by 47.8% in La Rioja and by 42% in Castille-La Mancha and Aragon.

The Most Expensive Land is Found in Madrid

In the first three months of 2014, the most costly plots were located in the capital (523.6 Euros per square meter), followed by Barcelona (355.4 Euros) and Alava (336.9 Euros). On the other end of the ranking one may see Albacete with 25.7 €/sqm, Asturias with 63.1 €/sqm and Leon with 84.6 €/sqm.

When it comes to the land purchase, during the first quarter 3.318 transactions were sealed, that is by 18.5% more than a quarter before but by 24.2% less than in the Q1 2013. The operations involved the total of 4.8 million square meters, by 22.7% more than last year and they jointly amassed €491.7 million, by 0.7% less.

Speaking of city type, those inhabited by between 10.000 and 50.000 citizens saw the transactions shooting up by 49% in the aforementioned period. In turn, sales in those over 50.000 habitants jumped up by 36.7%.

 

Original article: Expansión (after Europa Press)

Translation: AURA REE

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