Idealista: Second-Hand House Prices Rose by 2.4% in 2017

27 December 2017 – El País

Despite the Catalan crisis, this year, Barcelona has managed to dislodge San Sebastián from the top of the ranking as the most expensive capital city in Spain.

During 2017, buying a second-hand home has become 2.4% more expensive. Owners have paid an average price of €1,586/m2 in 2017, compared to €1,553/m2 in 2016, according to the latest price index from the real estate portal Idealista.

Nevertheless, not all of the markets have behaved in the same way; some have grown at double-digit rates, whilst others have expanded at more moderate rates, and others have seen price continue to decrease, still not reaching rock bottom.

Thirty of the provincial capital cities have seen price rises, although the most marked increase was recorded in Palma de Mallorca, with a rise of 29.1%, taking the average second-hand house price there to €2,667/m2. It was followed by the city of Málaga, where prices have risen by 16.7% to €1,934/m2. By contrast, Soria is the capital where prices have fallen by the most (-8.3%), followed by Ávila (-6.9%) and Almería (-5.1%).

Despite the Catalan crisis, which “will affect the final result for the year”, according to Fernando Encinar, Head of Research at Idealista, this year, Barcelona has managed to dislodge San Sebastián from the top of the ranking as the most expensive Spanish capital, at €4,284/m2, compared to €4,052/m2 in the Guipuzcoan capital. Those two cities are followed by Madrid (€3,285/m2) and Bilbao (€2,871/m2).

By autonomous region, the largest increase was recorded in the Balearic Islands, where owners are now asking 25.3% more for their homes than they were a year ago. It is followed by increases in Cataluña (9.5%), the Canary Islands (8.4%), the Community of Madrid (7.1%), Aragón (2.3%), the Community of Valencia (1.9%), Andalucía (0.8%) and País Vasco (+0.5%). At the other end of the spectrum, the largest decreases were recorded in Navarra (-4.8%), Asturias (-3.2%) and Castilla La Mancha (-2.4%).

The Community of Madrid is the most expensive autonomous region, at €2,544/m2, followed by País Vasco (€2,519/m2), the Balearic Islands (€2,472/m2) and Cataluña (€2,082/m2), whilst the regions with the most affordable prices are Castilla-La Mancha (€897/m2), Extremadura (€932/m2) and Murcia (€1,019/m2). The provinces with the most expensive homes are Guipúzcoa and Vizcaya, at €2,760/m2 and €2,591/m2, respectively. They are followed by Madrid (€2,544) and Barcelona (€2,544/m2). Toledo is the most affordable province (€770/m2), followed by Avila (€801/m2) and Ciudad Real (€840/m2).

Original story: El País (by S. L. L.)

Translation: Carmel Drake

Tinsa: Madrid & Barcelona Lead Housing Market Recovery

1 July 2015 – Expansión

Tinsa’s IMIE Local Markets report says that Cataluña (with an increase of 1.3%) and Madrid (+0.6%) were the only regions that recorded house price increases during the second quarter 2015 with respect to the same period in 2014.

However, the speed of recovery is very different by region. In Navarra, Cantabria, Asturias, Valencia and Extremadura, YoY declines of more than 5% have been recorded, whilst in others, prices have also increased: Galicia and Castilla-La Mancha (by +0.6%, respectively) and País Vasco (+0.3%).

These figures have left Spain’s average price index in negative territory. It recorded a decrease of 2.9%, although that represented a slow down from the decline of 4.5% that the market ended the year (2014) with.

By province

There were YoY increases in six provinces, namely: Barcelona (+3.4%), Cuenca (+1.2%), Tarragona (+0.8%), Madrid (+0.6%), León (+0.4%) and Huesca (+0.3%). “With the exception of Barcelona and Madrid, where the evolution of prices in recent quarters seems to underpin the trend, we will have to wait and see whether this trend is consolidated in the other provinces”, says Tinsa in its report.

Meanwhile, there were decreases of more than 5% in 15 provinces. “If we analyse the behaviour of prices over the last four quarters, the province of Barcelona is the market that is displaying the clearest signs of recovery”, says the report. Madrid, Vizcaya, Girona and Toledo are the next best performing provinces in this ranking.

By capital

If we analyse data by capital city, we see that increases have been recorded in seven capitals. From highest to lowest, these were: Huesca (+5.2%), Barcelona (+4.9%), Málaga (+2.6%), Madrid (+2.5%), Guadalajara (+2.4%), Palma de Mallorca (+0.9%) and León (+0.4%). Meanwhile, prices in the cities of Burgos and León remained stable.

Decreases of more than 10% were recorded in four provincial capital cities (Córdoba, Almería, Oviedo and Ávila) in YoY terms and the reductions exceeded 5% in eleven capital cities during the last year.

Effort

Another interesting finding from the report is the level of gross financial effort required for the acquisition of a home, which has reduced between buyers since 2007. Specifically, it has decreased from representing 33% of annual income to 23%.

“If instead of taking into account the payment of the average mortgage, the calculation is performed on the market value of the home, according to Tinsa’s data, then buyers that have to make the greatest effort to buy a home are those in the Balearic Islands, where a borrower needs 12.2 years on average to pay off his property, versus the Spanish average of 5.8 years”, explains the document.

Finally, another important indicator is the average time it takes to sell a home in Spain, which currently stands at 10.6 months.

Original story: Expansión (by M. G. Mayo)

Translation: Carmel Drake