Tag: price per square metre

Tinsa: House Prices Fell by 1.7% in Barcelona & Rose by 4.5% in Madrid in Q4

30 December 2017 – Expansión

The real estate market is continuing on the path to recovery, but it has encountered an unexpected obstacle: “the process” (‘el procés’ in Catalan). In fact, the instability generated by the independentist challenge in Cataluña caused a slow down in the rate of growth that had been seen in both Cataluña and Barcelona until September, when the Catalan capital was leading the reactivation of the sector.

The path that Madrid and Barcelona had been following together diverged in the last quarter of 2017 when house prices in Barcelona decreased by 1.7% compared to the previous quarter, whilst in the Spanish capital, they rose by 4.5%, according to the Local Markets Index compiled by the appraisal company Tinsa. That figure represents the first decrease in the Catalan capital since Q2 2016.

“The political situation had a negative impact on house prices in Barcelona during the final quarter (of 2017)”, explained Jorge Ripoll, Director of Research at Tinsa. According to his explanations, “we are seeing a build-up of demand, primarily amongst investors, which has now started to spread to other buyer profiles”.

The quarterly decrease in Barcelona was concentrated in some of the districts that have some of the highest prices, such as Ciutat Vella (which saw a decrease of 5.8%), Les Corts (-5.5%) and Sarrià-Sant Gervasi (-1.1%); and they were not offset by the increases recorded in other neighbourhoods, such as Nou Barris (4.6%) and Sants-Montjüic (4.2%). Meanwhile, the growth in Madrid was boosted by significant increases in the districts of Chamartín (8.4%), La Latina (7.9%) and Carabanchel (6.9%).

This data means that Madrid outperformed Barcelona in terms of cumulative growth over the course of the year. In this way, the Spanish capital went from a YoY increase of 15.5% in Q3 to 17.1% in Q4, the highest of any of the provincial capitals. By contrast, the YoY increase in Barcelona moderated from 20.6% in Q3 to 14.8% in Q4, making it the second-placed municipality. In the Spanish capital, the most significant YoY increases were recorded in the following districts: Centro (21.1%), Salamanca and Retiro (both 17.6%); whilst in the Catalan city, prices soared in Sants-Montjüic (26.5%) and Sant Martí (24%).

The pull of the country’s two largest cities meant that house prices in Spain rose by 4.2% last year, accelerating significantly with respect to the 0.6% recorded in 2016 to reach an average price of €1,264/m2. This represents “moderate growth” according to Ripoll, who highlights that 2017 marked “the start of the recovery”.

Besides Madrid and Barcelona, the cities that recorded the highest price rises were Palma de Mallorca (13.7%), Pamplona (12.5%), Burgos (8.8%) and Vitoria (8.2%). In total, 30 of the 49 provincial capitals analysed in the study recorded positive growth. They also included important urban nuclei such as San Sebastián (6.1%), Sevilla (5.9%), Alicante (5.7%), Málaga (4.5%) and Valencia (3.9%). Of the 19 provincial capitals that recorded negative figures, the most notable decreases were recorded in Bilbao (-3.5%), Vigo (-0.6%) and Zaragoza (-0.8%), although Ciudad Real (-12.6%) recorded the worst result.

The decrease in house prices in Barcelona during the fourth quarter means that the Catalan capital was knocked off of its podium by San Sebastián as the most expensive town in Spain per square metre. In this way, the average house price in the Donostiarra city amounts to €3,231/m2. Meanwhile, the average house price in Barcelona amounts to €3,129/m2, and so, the sizeable gap – of approximately 20% – was maintained with respect to Madrid, where appraisers estimate that the average house price amounts to €2,601/m2 (…).

In terms of the effects that the Catalan crisis may have on the performance of the sector over the medium-term, Ripoll highlights that if the uncertainty experienced over the last quarter is prolonged, the negative evolution in Barcelona “may become endemic and result in a contraction”. Moreover, “we cannot rule out that” that phenomenon “will affect the rest of Spain” (…).

In this way, the average price of €1,264/m2 represents a return to the levels last seen in Q3 2013 and means that prices have decreased by 38.3% on average with respect to the historical maximum reached in 2007 (…).

Original story: Expansión (by Ignacio Bolea)

Translation: Carmel Drake

Activity Abounds In Spain’s Second-Hand Home Market

13 September 2017 – El Confidencial

Second-hand homes are the undisputed star of the Spanish residential market. Despite the fact that the volume of transactions involving second-hand homes plummeted following the burst of the real estate bubble, they now account for 8 of every 10 sales closed in Spain. In addition, more second-hand homes were sold during the first seven months of this year than between January and July 2008. The renewed appetite for these types of homes has resulted in an upwards rally in prices. In fact, over the last year, prices registered their highest increase for the last 10 years.

There are several factors behind this furore. Even though the construction of new properties has grown in recent months, it is not sufficiently voluminous to meet demand, which, having overcome the crisis and after emerging from its lethargy, now wants to purchase. Moreover, the gap in prices between both types of homes (new and second-hand) has led many buyers – including investors – to opt for second-hand homes.

According to data from the notaries, the square metre of a new build home is €569/m2 more expensive, on average, than of a second-hand dwelling. At the national level in June, the average price of a second-hand home amounted to €1,478/m2, whereas that of a new build residence stood at €2,047/m2 (…).

The sale of second-hand homes hit rock bottom in 2012 when 160,000 units were sold, compared with almost 450,000 in 2007. Nevertheless, with the exception of 2009 and 2010, more second-hand homes are always sold than new builds. In 2008, the first year after the bubble burst, the figures about equal. But, a definitive gap emerged again in 2015, to the extent that last year, 8 out of every 10 homes sold in Spain were second-hand.

Prices rise by 5% in one year

This buyer appetite has had an immediate impact on prices. During the month of August, prices rose by 4.9%, the greatest YoY increase in the last 10 years. As such, the average price per square metre now amounts to €1,708/m2, according to data from Fotocasa (…).

Once again, the behaviour has been very irregular throughout the length and breadth of Spain. There were significant increases in the Balearic Islands (16.2%) and Cataluña (11.6%), the only autonomous regions that saw prices rise by more than 10%. They were followed by price rises in the Canary Islands (5.6%), Andalucía (5.4%), Castilla-La Mancha (4.7%), Madrid (4.2%) and Extremadura (3%).

Nevertheless, we should not forget that the decrease in house prices from their peaks is still very significant across the vast majority of the country. The average price of second-hand homes in Spain has recorded a cumulative decrease of 42.2% since the peak of April 2007 (€2,952/m2). In this sense, 11 autonomous regions still record cumulative decreases of more than 40% compared to the maximum prices recorded nine years ago. They are led by La Rioja (-56.8%), and followed by Navarra (-53.8%), Aragón (-51.4%), Castilla-La Mancha (-51.3%), Murcia (-49.4%), Asturias (-46.8%), the Community of Valencia (-45.7%), Cantabria (-43.1%), Cataluña (-42.1%), Madrid (-40.9%) and Extremadura (-40.6%).

“Meanwhile, the housing market is registering levels of activity that we have not seen for 10 years, as a result of the improvement in the economy and employment, as well as of a return of confidence to the sector (…)”, explains Beatriz Toribio, Head of Research at Fotocasa. Nevertheless, Toribio points out that “despite the chunky growth in the number of mortgages, transactions and prices, the sector is still at much lower levels than during the golden years” (…).

General increases in Madrid and Barcelona

Madrid and Barcelona, two of the most active markets from a real estate perspective are by no means unaffected by the rise in the prices of second-hand properties. Prices rose in 19 of the Spanish capital’s 21 districts in August (…). In terms of the most expensive and cheapest districts, Salamanca is the most expensive for buying a home, with a price of €4,923/m2. It is followed by Chamberí (€4,681/m2), Centro (€4,453/m2) and Chamartín (€4,448 /m2). At the opposite end of the spectrum, Villaverde is the most affordable district for buying a second-hand home, with an average price of €1,518/m2.

Meanwhile, in Barcelona, house prices rose in seven of the 10 districts analysed by Fotocasa in August (…).

Original story: El Confidencial (by E. Sanz)

Translation: Carmel Drake

RE/MAX: The RE Recovery Is Spreading Across Europe

12 June 2017 – El Mundo

The real estate market is growing, not only in Spain, but also in Europe, according to the Housing Report compiled by RE/MAX Europa. This improvement is being reflected in high levels of demand and rising prices, a trend that looks set to continue over the coming months in the property sector of the Old Continent. The good borrowing conditions and the incentives, especially for those buying their first home, are two of the main factors that are driving this growth.

Specifically, in Spain, house prices are stable, with potential for growth. “The increase in wages in Spain, the access to financing, as well as the political stability are posited as the most important factors for driving this upward trend in prices”, explain RE/MAX Europa.

Specifically, since 2015, the sales prices of family homes, as well as of flats and apartments, have increased by 4.5% on average in urban areas, where the average price per square metre has risen from €1,651/m2 to €1,727/m2. House prices in urban areas are expected to increase by 1.8% in 2017 and by 1% in the case of properties located in small towns.

And the picture is even more buoyant in the rental market. Prices per square metre have risen by 9.8% in the large cities and by 7.7% in small towns. In this way, the average monthly rental cost in a Spanish city amounts to around €800/month, whilst in the smaller towns, that figure stands at around €600/month.

The recovery of the real estate sector at the European level is based, above all, on low interest rates and, therefore, loans that are accessible to the public. This situation is “currently being seen in almost every country in Europe”, said the study. “That is resulting in higher demand, which is driving up prices in almost every segment and area”, it adds.

In Slovakia and Estonia, for example, thanks to these favourable conditions, there has been a significant increase in the construction of new homes, said RE/MAX Europa. In Malta, there has also been growth in the rental market, due to the rising number of overseas employees living on the island. Markets such as Portugal, Greece and Scotland “have been recovering really well over the last few years and are now showing clear signs of stable growth, with the prospect of more transactions in the future”.

Cities are improving

The experts at RE/MAX confirm that between 2015 and 2016, sales prices rose for apartments and family homes. In particular, prices per square metre rose significantly in the case of urban apartments, specifically, by 13% in certain cities in Lithuania, Germany and Luxembourg. The sales prices of houses in small towns also rose and are expected to increase by 4% in 2017 in Austria and Estonia. Nevertheless, prices are predicted to remain stable in France, Greece and Switzerland.

Rental prices also increased in 2016. Specifically, by 10% for urban apartments in The Netherlands, Romania and Spain, and by 16% in Malta. The experts at RE/MAX predict that rental prices will increase or remain stable in the majority of Europe during 2017.

One of the most important criteria in determining differences in prices is location. According to Michael Polzler, CEO of RE/MAX Europa, “the sales prices of apartments vary by 64%, depending on whether a property is located in an urban area or in a small town. For family homes, that difference amounts to 44%”.

Original story: El Mundo

Translation: Carmel Drake

Fotocasa: Rental Home Prices Rose By 9.5% YoY In Q1

28 April 2017 – El Mundo

The average price of rental housing in Spain rose by 9.5% YoY and by 5.9% QoQ during the first quarter of 2017, according to the Real Estate Index compiled by the online portal Fotocasa. In this way, the average rental home cost per square metre amounted to €7.93/m2 as at March 2017.

This quarterly increase in rental home prices was in line with the trend observed in 2016. In the absence of official statistics, the index from Fotocasa corroborates the anecdotal evidence being seen on the street.

“Rental prices are rising significantly because demand is much higher than supply, above all, in those areas with the largest volumes of economic, tourist and demographic activity. Month after month, in regions such as Cataluña, Madrid and the Balearic Islands, we are seeing how the distance between the peak prices recorded in 2007 and 2008 is decreasing, and in some cities in those areas, the price per square metre has now reached the pre-crisis maximum, such as in the case of Barcelona”, explained Beatriz Toribio, Head of Research at Fotocasa.

In fact, the increase recorded during the first quarter of 2017 is the most markedsince Q1 2007, according to the Real Estate Index, when prices rose by 4.9%. Since then, the quarterly rental price has done nothing but decrease, with some exceptions in one-off quarters in 2011 and 2014. In 2015, the quarterly rental price began to recover, with increases of 2.8% and 1.5% in the first and second quarters, respectively, trends that continued in 2016, with the exception of Q3 2016, when prices fell by 2%.

At the inter-annual level, rental prices rose by 9.5%, the most marked increase in the history of the Real Estate Index, which has been compiled since January 2006. Moreover, during Q1 2017, rental prices rose in 14 autonomous regions at the quarterly level and in every region at the annual level. (…).

Evolution by autonomous region and province

Since reaching their maximum price in May 2007 (of €10.12/m2), rental home prices have recorded a cumulative decrease of -21.7%. In this regard, only three autonomous regions have recorded cumulative decreases of more than 30% since they peaked five years ago. In this way, Aragón is the autonomous region where rental prices have fallen by the most (-38.7%), followed by Castilla-La Mancha (-34.1%) and Cantabria (-31.3%).

During the first quarter of 2017, rental price increases were recorded in 14 autonomous regions, with the rises ranging from 5.4% in Cataluña to 0.4% in Castilla y León. Regarding the evolution by province, rental price increases were recorded in 36 provinces with respect to December 2016, with the rises ranging from 8.6% in Guadalajara to 0.2% in Alicante. By contrast, rental prices decreased in 14 provinces with the reductions ranging from -0.2% in Toledo to -3.6% in Ávila. (…).

By municipality, the town with the highest rental price was Barcelona, at €15.15/m2/month, followed by Eivissa (€14.60/m2/month), Sant Cugat del Vallès (€13.41/m2/month), Sitges (€12.85 /m2/month) and Castelldefels (€12.85/m2/month).

Original story: El Mundo

Translation: Carmel Drake

CBRE: New Build House Prices In Zaragoza Will Rise By 3% In 2017

28 March 2017 – El Periódico de Aragón

The price per square metre of new housing in Zaragoza grew by 1% last year and is expected to rise by 3% on average in 2017. Those were the comments expressed yesterday by the CEO of the real estate consultancy CBRE, Miguel Ángel Gómez, in the Aragonese capital, during his presentation of the latest report about the evolution of the housing market in Aragón.

A moderate reactivation in terms of development activity and a recovery in demand meant that the positive trend in prices that began in 2015 continued in 2016. In this way, the average price per square metre of a new build home in Zaragoza amounted to €1,976/m2 in 2016. By district, Centro and Universidad were the areas that saw the highest price rises last year, increasing to €3,800/m2 and €3,150/m2, respectively, as a result of the release onto the market of several iconic projects.

Those price rises went hand in hand with a recovery in the rate of house sales, which rose by 14.7% in Aragón last year with respect to 2015. According to the latest data from Spain’s National Institute of Statistics, 10,700 operations were recorded in total.

One of the indicators that reflects the improvement in the behaviour of the new build residential market was the rate of sales. Whilst in 2015, it took 18 months to sell an entire development, now, 75% of new developments are being sold off-plan within the first six months.

Fewer homes are available

CBRE’s report identifies a downwards trend in the supply of available new build homes in the city, as a result of an increase in demand and only moderate development activity. In this regard, Parque Venecia, Miralbueno and Arrabal-Barrio de Jesús are the districts that have the greatest availability of new homes. Meanwhile, La Muela, Cuarte de Huerva and Puebla de Alfindén are the towns that have the most stock.

By contrast, there is a shortage of residential land in the central area, which led to the launch of several renovation projects in 2016. Nevertheless, CBRE thinks that those homes will not cover demand. On the other hand, the consultancy firm forecasts an increase in the number of transactions involving land in the area around Miguel Servet, Avenida Cataluña, Miralbueno, Rosales del Canal, Valdespartera and Arcosur this year. The price per square metre of land in Aragón amounted to around €600/m2 during 2016 and whereby exceeding the national average (€400/m2).

Original story: El Periódico de Aragón (by Alicia Gracia)

Translation: Carmel Drake

Idealista: Second-Hand House Prices Fell By 1.1% In November

1 December 2016 – El Economista

Second hand house prices decreased by 1.1% during the month of November, according to the most recent real estate price index published by Idealista.

Specifically, the web platform places the average price per square metre at €1,497/m2, which represents a YoY decrease of 4.3% with respect to the same month last year, wen it stood at €1,564/m2.

Non-uniform decreases

Nevertheless, this decrease has not been uniform throughout the Spanish territory, given that the price of second-hand homes has actually increased in six autonomous regions.

The greatest increase was recorded in the Balearic Islands, where prices rose by 1.3% to €1,972/m2; followed by Navarra, where the price per square metre now amounts to €1,442/m2, up by 0.8% with respect to the previous month; and Cantabria, which experienced an increase of 0.4% to €1,572/m2.

País Vasco, Aragón and La Rioja recorded increases of 0.1% in all three cases taking the price per square metre to €2,498/m2, €1,235/m2 and €1,063/m2, respectively.

At the other end of the scale is Castilla-La Mancha, where, after a 1.5% decrease in the price of second-hand homes during the month of November, the price per square metre is now €884/m2.

It is followed by Madrid and Cataluña, where prices have decreased by 1.3%, taking the price per square metre to €2,332/m2 and €1,793/m2, respectively.

The case of Extremadura stands out too, where prices have not moved with respect to the month of October, remaining stable at €917/m2.

By province

During the month of November, twelve provinces saw price rises, led by the Balearic Islands (1.3%), Navarra (0.8%), Córdoba (0.8%), Huesca (0.6%) and Ourense (0.5%).

Meanwhile, the most significant decreases were recorded in Lleida (-3.5%), Cuenca (-2.6%), Segovia (-2.2%), Jaén (-1.9%) and Toledo (-1.9%).

Gipúzcoa and Vizcaya continued to lead the ranking of most expensive provinces, with average prices per square metre of €2,823/m2 and €2,556/m2, respectively, followed by Madrid, at €2,332/m2 and Barcelona, at €2,218/m2.

By contrast, the cheapest provinces were Toledo (€800/m2), Ciudad Real (€823/m2) and Cuenca (€835/m2).

Prices rise in 15 provincial capitals

By provincial capital, the most pronounced increase was recorded in Palma de Mallorca, where price rose by 2.5%, followed by Barcelona (1.7%) and San Sebastián (1.6%).

By contrast, Lleida (-3.3%), Murcia (-2.7%), Pontevedra (-2.5%) and Segovia (-2.4%) recorded the highest decreases in second-hand house prices.

San Sebastián is still the most expensive city in Spain, at €3,952/m2, ahead of Barcelona, where the average price amounts to €3,781/m2 and Madrid (€2,887/m2). At the other end of the scale, Lleida and Castellón are the cheapest provincial capitals in the ranking, with average prices of €865/m2 and €946/m2, respectively.

Original story: El Economista

Translation: Carmel Drake

Tecnocasa: Second-Hand House Prices Rose By 8% In H1

7 September 2016 – El Mundo

The average price of second-hand housing in Spain rose by 7.99% YoY during the first half of 2016, to €1,666/sqm, according to the XIII Report about the residential market, prepared by Tecnocasa and the University of Pompeu Fabra (UPF) using sale/purchase and mortgage data from the real estate company.

Despite the significant increase, this average price is still well below the maximum values that the market reached at the end of 2006 and the beginning of 2007, when the average cost per square metre of second-hand homes amounted to more than €3,500. (…).

The city of Barcelona, which saw a price rise of 9.45%, led the increases during the first half of 2016, followed by Málaga (9.21%) and Madrid (9.03%). In this way, the cost per square metre rose to €2,443/sqm in Barcelona, to €1,044/sqm in Málaga and to €1,835 in Madrid.

In this regard, Tecnocasa notes that “we are seeing a two-speed recovery”, given that prices in cities such as Guadalajara, Sevilla, Zaragoza and Valencia increased by less than 2% (during the same period).

At a press conference held to present the report, the Director of the Department for Analysis and Reports at the Tecnocasa Group, Lázaro Cubero, explained that rental prices are also increasing, in the same proportion, and the average mortgage is also rising (€91,808), which represents an increase of 9.8%, although still represent less than half the lending figures in 2007 (€185,462). In this sense, it is worth remembering that the average monthly repayment amounts to €367.

Cubero stated that prices are still “attractive” – they are 52% lower than they were in 2006 for Spain as a whole – and financing conditions are very favourable, thanks to low interest rates, at a time when vendors are still having to apply discounts to their initial asking prices to achieve a sale.

The CEO of the Tecnocasa Group, Paolo Boarini, indicated that financial institutions are still behaving in a conservative way when it comes to granting mortgages: they are granting 73% of the appraisal value, and “it is very hard for people with temporary contracts to obtain a mortgage; self-employed people also face challenges”.

Meanwhile, for the Professor of Economics at the UPF and the coordinator of the report, José García Montalvo, the increase in the uptake of fixed-rate mortgages is “a significant change in the right direction”. He criticised Spain in this regard, stating that variable rate mortgages do not account for 95% of the total market in any other country, given that this means all of the risk in terms of interest rate fluctuations is transferred to the client. (…).

On the other hand, the Tecnocasa Group brokered 4,327 house sales in Spain during the first half of the year, up by 22% compared with the same period in 2015, as well as 1,445 mortgages, up by 28%, through its network of 465 offices (19.23%) and 2,000 sales agents. (…).

Original story: El Mundo

Translation: Carmel Drake

Notaries: House Sales Rose By 26.6% YoY In January

16 March 2016 – Expansión

House sales shot up by 27.7% during the first month of 2016.

The number of house sales recorded an increase of 26.6% in January compared with the same month in 2015, with 27,568 operations, although that variation moves up to 28% if we consider the series corrected for seasonal effects, according to statistics prepared by the General Council of Notaries.

The annual increase in the number of sales was driven by an expansion in the sale of apartments (+27.7%), the increase in the sale of single-family homes (+22.6%) and the sale of other properties (+22% YoY).

In the case of apartments, the sale of unsubsidised homes experienced a 28.2% increase with respect to January 2015. Within this segment, the sale of second-hand flats rose by 32.8%, which contrasted with the 3.8% decrease experienced by the sale of new apartments.

In terms of average prices, the price per square metre of the homes purchased in January amounted to €1,303/m2, which reflects a YoY increase of 2%, due both to the increase in the price per square metre of apartments (+1.5%), as well as the rise in the price of single-family homes (+4.5%). In terms of flats, the price per square metre of second-hand properties amounted to €1,405/m2 (+2.1%) compared with €1,732/m2 (+1.2%) for new homes.

Meanwhile, there were 6,590 operations involving other properties during the first month of the year, which represents a YoY increase of 22%. Of those operations, 38.6% related to plots of land. The average price per square metre of those transactions amounted to €243/2 (up by +34.6% YoY).

In light of this data, the General Council of Notaries believes that the Spanish real estate market is continuing its recovery, which is also being reflected in the evolution of the mortgage market for the acquisition of homes. (…).

Original story: Expansión

Translation: Carmel Drake

Ministry Of Development: House Prices Rise In 7 CCAA In Q1 2015

2 June 2015 – Cinco Días

The Canary Islands, Aragón and Madrid lead the ranking in Q1 2015.

In real terms, the average national increase was 0.9%.

In Spain as a whole, the average price of unsubsidised housing amounted to €1,457.90/m2 at the end of Q1 2015. This represents a negative variation with respect to the previous quarter (-0.36%) and the previous year (-0.11%), according to data published on Monday by the Ministry of Development.

However, this decrease did not take place in every region. Positive variations were recorded in some regions with respect to the same period in 2014. House prices increased in 7 regions: Canary Islands (3.56%), Aragon (1.9%), Madrid (1.67%), Valencia (0.69%), Extremadura (0.57%), Balearic Islands (0.1%) and Andalucía (0.05%).

The other regions experienced YoY decreases: Asturias (-6.53%), Castilla y León (-3.72%), Navarra (-3.15%), Galicia (-2.29%), País Vasco (-1.47%) and Murcia, Ceuta and Melilla (-1.35%).

At the national level, and in real terms, the price of unsubsidised housing experienced a YoY increase for the second consecutive quarter, rising by 0.9%.

If we look at the historic series of the Ministry’s statistics, the average price per square metre has decreased by 30.4% since its peak in the first quarter of 2008. The decrease has been even greater in real terms: 36.3%.

The five regions in which prices have decreased the most are: Aragón (-38.47%), Murcia (-38.28%), Castilla – La Mancha (-38.25%), Valencia (33.89%) and Cataluña (33.56%). At the other extreme (where prices have decreased the least) are the autonomous cities of Melilla (-5.19%) and Ceuta (-8.63%), followed by Extremadura (-16.75%), País Vasco (-20.52%) and the Balearic Islands (-22.74%).

In towns with more than 25,000 inhabitants, the highest prices per square metre are located in four regions. The two most expensive municipalities are in País Vasco, with San Sebastián leading the ranking (€2,996/m2), followed by Getxo (€2,663/m2). In third place is the Madrid suburb of Pozuelo de Alarcón (€2,489/m2). Calvía (€2,438/m2) in the Balearic Islands occupies fourth place and Sant Cugat del Valles (€2,433) in Cataluña is in fifth place. The cities of Madrid and Barcelona occupy sixth and seventh places (€2,411/m2 and €2,397/m2, respectively).

The cheapest places include Elda (€591/m2); Almendralejo (€592/m2); Tomelloso (€610/m2); Ontinyent (€611/m2); Jumilla (€620/m2); Novelda (€628/m2) and Credvillent (€632/m2).

Finally, the average price of subsidised social housing in Spain during Q1 2015 was €1,095.40/m2, i.e. 0.41% lower than during Q4 2014, whilst the variation with respect to the same quarter in 2014 was a decrease of -0.68%.

Original story: Cinco Días (by Amanda Andrades)

Translation: Carmel Drake

Prices of Luxury Homes To Rise In Madrid And Barcelona

14 May 2015 – Expansión

Recovery / The prices of high-end homes will increase by 5% in Spain’s largest cities in 2015, but they still fall well below those seen in Monaco, London and Paris.

Madrid and Barcelona are two of the large European cities in which luxury housing is least expensive. Nevertheless, it is clear that high quality properties are going to become more expensive in 2015. Specifically, by 5% in the “most prestigious areas” of Barcelona and by between 2% and 3% in Madrid.

Those are the findings of a study by Coldwell Banker – one of the largest networks of real estate brokers in the world – which compares prices per square metre for new, used and luxury housing in prime areas of the continent’s main real estate cities: Monaco, Prague, Rome, Milan, Paris, Valeta (Malta), Berlin and London, as well as in the Madrilenian and Cataluñan capitals. The comparison is linear; it does not take into account the (respective) income of citizens.

In the urban centre of Madrid, the average price per square metre of new housing developments is €5,610, i.e. €110 more than in the centre of Barcelona (€5,500). Those figures are light years away from the (prices seen in) London (€11,500/m2) and Paris (€10,000/m2) and from the stratospheric prices of €80,000 per square metre in the principality of Monaco.

Thus, whilst a 100 m2 apartment in a well-located area of the Spanish capital costs €561,000 on average; in the centre of Monte Carlo, the price of the same property would soar to €8 million. In other words, the same price as 14 such properties in Madrid and 14.5 in Barcelona. We should bear in mind that Monaco has a surface area of just 2 square kilometres, in which almost every centimetre contributes exclusivity and luxury.

Other European cities have less prohibitive prices. The price per usable square metre of a new residential property in Milan amounts to €10,500 and in Rome, to €8,500.

Of the 10 individual real estate markets covered in the report, only three are cheaper than Madrid and Barcelona: Berlin (€4,800 per m2, on average), Valeta (Malta, €3,650/m2) and Prague (€2,770/m2).

The price of luxury housing is increasing with respect to central areas in all of the cities, except for Monaco, which is an extremely “limited” market, says the report. The price per m2 of a new luxury apartment – not necessarily in the centre – is €60,000 in the state of Monaco.

Far below the prices seen in the Principality, the most exclusive capital in Europe is Paris, where the average price per square metre of luxury homes amounts to €25,000. In third place and still in a bubble is London, where residential properties of the highest quality have an average price of €18,000 per square metre.

Prices in London are double those in Madrid (€9,033). Luxury homes in Madrid are 20% more expensive than in Barcelona (€7,500 per square metre).

Limited supply

In Barcelona, “prices will start to recover slowly in the main areas. In the areas of highest demand and prestige, we expect to see an increase of between 3% and 5%”, says the report. In Madrid the increases will amount to between 2% and 3%.

According to Coldwell Banker, the “high quality” residential market in Madrid “is still very limited” and in Barcelona “supply is limited, since there are few new buildings in the centre of the city”. In Madrid, there are approximately 200 developments of this kind in the centre and around 400 in the wider metropolitan area.

That is not the case in other capitals. The supply of new homes in Berlin is “extremely strong”. Investors mostly seek “small furnished, high-end luxury apartments”. Penthouses can cost as much as €20,000 per square metre.

The other goldmine is still London: “In Mayfair and Marylebone, there is a large supply of new projects that are just coming to an end now”, says the report.

Original story: Expansión (by Juanma Lamet)

Translation: Carmel Drake