Urban Land Is Around 145 Euros a Square Meter

17/09/2014 – El Mundo

The urban land market seems to have bottomed out and started to stabilize in terms of prices adjusted to the property sales. For the fourth consecutive quarter, from April to June the value of a piece of land in Spain averaged at 146.4 Euros per square meter, being by 3.5% more expensive than in the first quarter of the year but by 9.3% cheaper if compared to the same period 2013, reports the Ministry of Public Works.

In any case, pricing development for the last 12 months has been marking a stable path: an average of 147.5 euros (Q3 2013), 147.9 euros (Q4 2013) and 141.5 euros (Q1 2014). The last figure hits the lowest in the historic series.

It appears that the balance have been reached thanks to purchase numbers bouncing back. Above all, in terms of volume. In the second quarter of 2014, 5.6 million square meters changed hands which paid the total of €547 million for them. The traded area is by 13.9% greater than it was in Q2 2013. Transactions amounted to 3.793 contracts, by 14.3% more than in Q1 2014 and by 0.9% less than in Q2 2013.

However, the indicators went stable after the land prices dipped-down nearly 50% (48.6%) on the maximum, 285 €/sq m value, in pre-recession Q3 2007.

By regions, the Q2 year-on-year adjustement portrays a huge gap stretching from an almost 49.3% upsurge in prices in Extremadura to a 35.8% slump in Castille-La Mancha. In Castille and Leon urban land values rose by 42.1%, in the Basque Country by 21.4%, in the Balearic Islands by 10.1%, in Cantabria by 8.7% and in Andalusia by 5.1%, among other regions that registered an increase. On the other hand, land has cheapened considerably in the Community of Madrid (-17.2%) and Catalonia (-23.3%).

While studying the statistics it becomes visible that in over-50.000-inhabitant cities average price per square meter diminished by 16.9% year-on-year in the second quarter of 2014, posting 274.4 euros. The highest prices are found in the province of Barcelona (€547.1), the Balearic Islands (€448.8) and Zaragoza (€428.1). On the contrary, land costs least in Ourense (€93.2), Albacete (€95.1) and Pontevedra (€129.6).

The number of sealed deals on plots varies in each municipality: in those with less than 1.000 inhabitants, there have been 367 contracts signed, by 14.7% more than in Q2 2013; in 1.000 to 5.000 human populations, 805 plots have been sold (11.7% less), 5.000 to 10.000 inhabitants – 591 pieces of land changed the owner (-10.3%); 10.000 to 50.000 people they hit 1.273 transactions (+2%); and in those with over 50.000 inhabitants they totaled at 757 (+9.9%).

 

Original article: El Mundo

Translation: AURA REE

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