House Prices Rise By 9% In Madrid In 1 Year

13 October 2015 – Expansión

Average house prices in Madrid amount to €2,937/m2, which represents an increase of 8.9% compared with a year before, according to a report published last week by the real estate consultancy Aguirre Newman. Despite this increase, house prices in the capital are still 37% lower than their peak in 2007 (€4,657/m2), the year the crisis started and the real estate bubble burst. The consultancy says that the current increases in house prices is being driven by growth in prime areas, given that prices have remained stable in all other areas.

The most expensive neighbourhoods for buying a house in the capital are: Almagro (Chamberí), El Viso (Chamartín), La Piovera (Hortaleza), Goya and Castellana (Salamanca) and Justicia (Centro), where property developments are currently being sold for prices of between €6,500/m2 and €7,000/m2. At the other end of the scale, the cheapest homes in Madrid are found in the districts of Villaverde, Villa de Vallecas and Carabanchel, with prices of between €1,600/m2 and €1,800/m2.

In terms of the municipalities closest to the capital, average house prices are highest in Pozuelo de Alarcón and Majadahonda, reaching up to €3,944/m2. The most economical municipalities are Móstoles and Pinto.

Average prices in Spain

By contrast, Tinsa published another study at the end of last week, which revealed that the price of (unsubsidised) homes decreased by 0.4% in September with respect to the same month last year, which confirms “the stabilising trend in terms of prices”, according to the Local Markets Index. The appraisal company indicated that this is the slowest rate of decrease since March 2008 (-0.3%), which marked the first YoY price fall in the series, which was launched in 2001. Average house prices in Spain have recorded a cumulative decrease of 41.9% since their height. By region, prices in the Balearic Islands and Canary Islands performed the best in September.

Original story: Expansión

Translation: Carmel Drake

Tinsa: House Prices Fell By 2% In July

5 August 2015 – Expansión

According to Tinsa, house prices in July have recorded a cumulative decrease of 41% since 2007.

The decline in house prices moderated to 2% in July, the smallest YoY decrease since May 2008, but recorded a cumulative decrease of 41.5% from the peak figures registered during the last quarter of 2007, according to the Local Markets Index (IMIE) published by Tinsa yesterday.

This data from the appraisal company shows that the residential market is continuing to stabilise, a process that began during the second half of 2013.

The best figures were recorded on the Mediterranean Coast, where the average price increased by 2.8%.

Overall, the residential market showed signs of recovery in almost all areas, with a slight fall of just 0.5% between the end of 2014 and July 2015. Moreover, in three of the five areas analysed, the evolution in prices was positive during the first seven months of the year.

On the Mediterranean Coast, where prices decreased by 47.6% on average during the crisis, prices have increased by 3.8% on average since the end of 2014.

Meanwhile, in the provincial capitals and major cities, as well as in the Balearic and Canary Islands, prices have increased by several tenths so far in 2015: by 0.2% and 0.9%, respectively.

However, with the exception of the Mediterranean Coast, prices have decreased over the last twelve months in the majority of regions.

Average prices in provincial capitals and major cities and in other municipalities in July were 1.8% below their levels in July 2014, on average.

The decrease was more acute in metropolitan areas, which recorded a YoY drop of 4%, and in the Balearic and Canary Islands, where prices decreased by 4.8% compared with a year earlier.

Since 2007, house prices have recorded a cumulative decrease of 41.5% on average in Spain.

The greatest decreases have been registered on the Mediterranean Coast, with a 47.6% decrease, followed by the metropolitan areas and provincial capitals and major cities, which all recorded cumulative declines of 45.1%.

By contrast, the smallest cumulative decreases have been recorded in the Balearic and Canary Islands, with a decline of 30.5% and in other municipalities, where prices have fallen by 36.4%, on average.

Original story: Expansión

Translation: Carmel Drake

YTD Apr 15: Construction Permits Increase By 30% YoY

30 June 2015 – Expansión

According to the latest data from the Ministry of Development, the number of permits granted by the colleges of technical architects for the construction of homes amounted to 15,178 during the first four months of the year, up by 29.9% on the same period in 2014 (11,680).

The rate of growth increased significantly in April, since during the first quarter of the year (from January to March), the number of permits increased by just 23% YoY.

In April, the number of permits granted increased to 4,497, which represents an increase of 50.8% with respect to the same month in 2014 and a return to growth after the slow down in March.

Permits started the year with growth of 37% in January, a percentage that increased to 57% in February.

Nevertheless, in March, the trend was broken and the number of permits decreased by 13.6% in YoY terms.

In inter-monthly terms, permits increased by 46.8% in April with respect to the previous month, which represents a change in the trend, since in March, the number had reduced by 27% with respect to February.

Original story: Expansión

Translation: Carmel Drake