Main article: Real estate in Spain
Price dynamics by year
- 2008: 8.75% price reduction (10.05% adjusted for inflation)
- 2009: -6,75% (-7,23%)
- 2009: -6,57% (-7,23%)
- 2010: -3,85% (-6,67%)
- 2011: -8,17% (-10.28%)
- 2012: -11,34% (-13,82%)
- 2013: -9.19% (-9.44%)
- 2014: -2,96% (-1.96%)
- 2015: -1,71% (-1.71%)
- 2016: +1.67% (+0,1%)
- 2017: +4,47% (+3,32%)
Property price indices in Spain
- Fotocasa - prices by region, city and individual districts.
- spain Bank of Spain Index + price per meter
2022: House prices soar 8.4%
In May 2022, housing Spain in increased by 8.4% on an annualized basis, which led to an increase in prices to a level not observed since November 2011. This is reflected in the Tinsa IMIE index data, which the property valuation company released on June 6.
To find similar growth for the year, it is necessary to return to June 2007, when prices increased by 8.8% compared to the same month of the previous year. However, the 15-year-old trend is very different from the current one. At the time, house price growth slowed, eventually a prelude to the housing bubble bursting.
In July 2004, at the height of the property boom, house prices rose 20.4% from a year earlier.
In June 2007, the overall Tinsa index was 2,325 points, 21.4% higher than the 1,827 points recorded in May 2022.
2021: Rises to €1,897 per square metre in the secondary market
In the first quarter of 2021, the price of housing in Spain increased by 1.1% and settled at 1.897 euros per square meter. For a whole year of the COVID-19 pandemic, Spain has experienced positive and negative price fluctuations in the secondary housing market. In particular, according to the data of the real estate portal Fotocasa in the first quarter of 2021, the price increased by 1.1%, and on an annualized basis by 2.9%.
In December 2019, the first decline in house prices was noted after 38 months of chain jumps. So, in March 2020, prices for secondary housing decreased by almost 3%. Further, prices fell for eight months (from March to October 2020).
Year-on-year growth was recorded in Extremadura (6.2%), Balearic Islands (4.4%), Galicia (4.3%), Catalonia (3.9%), Basque Country (2.6%), Valencia (2.3%), La Rioja (2.2%), Aragon (2.1%), Andalucia (2.0%), Asturias (2.0%), Canary Islands (1.8%), Castile-La Mancha (1.2%), Canturcia (1.8%)
In terms of price ratings by autonomous communities, Madrid is ranked first and is the only one to break the €3,000 barrier. A square metre here costs €3,104. It is followed by the Balearics (€2,880/m2), the Basque Country (€2,876/m2) and Catalonia (€2,520/m2).
On the contrary, in 13 regions, the price does not exceed 2,000 euros: Canary Islands (1,814 euros/m2), Cantabria (1,740 euros/m2), Andalusia (1,671 euros/m2), Navarre (1,670 euros/m2), Galicia (1,616 euros/m2), Aragon (1,595 euros/m2), Asturias (1,586 euros/m2), La Rioja (1,443 euros/m2), Valencia Castile (1,443 euros/1,443 m2)
2020: Secondary property prices rise 0.9% to €1,779 per metre
Prices for secondary housing in Spain in 2020 increased by 0.9% to 1,779 euros per square meter. This is evidenced by the data of the Idealista portal.
Only three autonomous communities recorded a decrease in prices: in Castile-i-Leone by 2.3%, in Galicia by 0.7% and in Cantabria by 0.4%.
Prices rose the most in Extremadura (4.5%), La Roja (3.8%), the Basque Country (3.2%) and Navarre (2.9%). In Madrid, growth was 1.7%. In Catalonia - 1.2%.
Despite the forecasts of many analysts, it is very likely that housing prices in 2021 will behave in the same way as in 2020, Idealista experts say. The ECB's moves, minimum mortgage rates, the stability of housing relative to other assets, and the hope of a quick recovery will all lead to modest price increases.
2019: Secondary property prices rise to €1,738 per metre
In July 2019, prices for secondary properties in Spain rose 0.3% from June and 5.3% from July last year. Such data are provided by the Idealista portal. At the end of July, a square meter of secondary housing in Spain costs an average of 1,738 euros.
Price declines were recorded in eight autonomous communities: Navarre, Morsi, Castile-la-Manche, Asturias, Cantabria, Valencia, the Canary Islands and Extremadura.
The largest growth is observed in Andalusia, Ceuta, Balearic Islands, Madrid.
2018: Prices rise
2017: Continued growth
At the end of 2017, property prices in Spain showed the maximum growth over the previous decade: 4.47% (3.32% adjusted for inflation).
2016: Return to price increases after 41% drop
Between Q4 2007 and Q3 2015, property prices in Spain fell by 41.9% (46.8% adjusted for inflation). In Q1 2016, property prices in Spain began to rise.
2015: Price increase for new buildings by 2.9% to 2002 level
In 2015, property prices in new buildings in Spain rose for the first time since 2007. According to the evaluation organization Sociedad de Tasación, prices for the year increased by 2.9% and returned to the level of June 2002[1]. Thus, the tendency to fall, which established during the years of the crisis, was interrupted.
New real estate has stopped falling in price in most parts of Spain, but not all. If in large cities there is a tangible increase in prices, then in some unpopular regions objects continue to fall in price.
At the end of 2015, the average price of new housing in the capitals of the Spanish provinces was 2,052 euros per square meter. Price growth was recorded in 11 out of 17 regions of Spain, and Madrid and Catalonia became the leaders (an increase of 6.2% and 4.8%, respectively). The biggest price cuts were in Aragon and the Basque Country, but even here it did not become critical - by about 1.1%. In Murcia, prices decreased by 1%.
2013: Decline continues - average year-end price €1,704 per metre
The average price per square meter of housing in Spain in April 2013 amounted to 1,147 euros - 16.5% less than a year earlier[2].
In June 2013, according to the General Council of Notaries, the average cost per square meter of real estate in Spain was 1,206 euros, which is 13.3% less than exactly the year before. Since the summer of 2007, housing has fallen by 34.9%. In addition, the number of transactions concluded during the month decreased three times compared to 2007.
The average cost of apartments decreased by 15.6% in average annual terms and reached 1,305 euros per square meter[3] square[3].
At the end of August 2013, according to the Pisos.com portal, the average cost per square meter in Spain was 1,749 euros. Compared to July's figures, real estate fell 1.41%.
Miguel Angel Alemani, CEO of Pisos.com, notes that at present, due to changes in the conditions for financing the current market situation, only buyers with certain savings can take advantage of the situation. Alemany admits that most often, transactions are currently being made to buy housing worth about 100 thousand euros in need of repair. As a rule, customers are looking for the maximum profitability from the subsequent rental of real estate.
In September 2013, the average value of secondary residential properties in Spain was €1,762 per square metre. This is evidenced by the data of the Fotocasa portal. This means that prices have not changed compared to the previous quarter, but decreased by almost 10% compared to September 2012.
The relative stabilization of prices recorded in the third quarter of 2013 contrasts sharply with the results of the last quarter (-3.8%). According to Beatrice Toribio, head of thinktank at Fotocasa, "Data from June to September could suggest that price falls have slowed and we are on the verge of a possible shift in trends. However, it is too early to talk about this, "the expert notes.
In average annual terms, prices decreased by 9.4% in September. A similar negative trend has been observed since November 2007.
Among autonomous communities, price increases occurred in Valencia (1.3%), the Canary Islands (1.2%), Castile-La Mancha (1.1%), Cantabria (0.9%), the Balearic Islands (0.6%), Madrid (0.6%), Murcia (0.3%), Aragon (0.3%) and Rioja (0.3%). In eight autonomies, by contrast, there was a decrease, the scale of which ranged from 2.5% in Extremadura (1,253 euros per square meter) to 0.2% in Catalonia (2,192 euros).
The rating of the regions with the most expensive secondary housing was topped by the Basque Country (3,074 euros per square meter), Madrid (2,377 euros) and Catalonia (2,192 euros). The most budgetary autonomies, on the contrary, were Extremadura (1,253 euros per meter) and Castile - La Mancha (1,247 euros). The most expensive cities were Basque San Sebastian and Getcho (4,331 and 3,731 euros), and the most budgetary - the municipality of Fuensalida in the province of Toledo (807 euros).
In the third quarter of 2013, according to the Global Property Guide, prices for apartments and houses in Spain fell by 9.46% compared to the same period in 2012. This is the most significant decline among the world's largest real estate markets. Spain's real estate market again showed the worst dynamics, ahead of Greece (-8.85%), Russia (-8.18%) and Romania (-7.15%).
According to the report of the Society of Real Estate Appraisers (October 2013), the value of real estate in Spain fell by 47.7% compared to the maximum indicators recorded in the heyday of the market, and is 1,253 euros per square meter.
As of December 2013, according to the Pisos.com portal, the average price per square meter in Spain was 1704 euros. The average price in each of the provinces is given in the figure below.
Fitch property price forecast
Employment problems in Spain, combined with an excess of completed bank housing for sale, make it unlikely that real estate prices will soon stabilize. This is stated in a statement by Fitch rating agency in early June 2013.
"The imbalance between supply and demand suggests that the liquidation of real estate assets put up for sale by a" bad "bank and private financial institutions will take several years," Fitch said.
In addition, experts warn of a possible decrease in real estate prices associated with an acceleration in the pace of sales of the "bad" bank.
Representatives of the agency indicated that this financial organization needs to accelerate the pace of housing sales if its management wants to fulfill the tasks of selling 42,500 real estate in 5 years and liquidate the entire base within a prescribed period of 15 years.
Fitch experts noted that some financial institutions have already begun to lower prices in order to speed up the process of selling real estate before the "bad" bank further reduces prices.
However, representatives of the agency indicated that both the "bad" bank and other financial institutions are interested in finding a balance between accelerating sales and lowering prices. They noted that neither side is interested in a sharp drop in value, provoked by the use of overly aggressive strategies.
Forecast of the Society of Appraisers
According to the forecasts of the Society of Real Estate Appraisers (October 2013), the market value of housing in Spain by the end of 2013 will drop to 1,160 euros per square meter, which is 51.7% less than the maximum historical mark of 2,401 euros recorded in 2007.
According to the report "Trends in the Real Estate Sector," presented by the CEO of the company Juan Fernandez-Aceituno, in September the cost of housing decreased by 15.7% in average annual terms to 1,256 euros per square meter. Fernandez-Aceituno noted that house prices in the last quarter of the year will fall by another 7.6% - to 1,160 euros per meter.
Despite such gloomy forecasts, Fernandez-Aceituno believes that "the cost of housing may continue to fall, but this does not mean that the sector is not recovering." "Moreover, I believe that the activity of the real estate market will recover earlier than prices," explained the head of the Society of Appraisers.
2007-2012: From peak prices to collapse
The maximum property prices in Spain for the year were reached in December 2007. In the period from 1996 to 2007, the average price of real estate on the coast of Spain soared by 250%, due to the fact that hundreds of thousands of foreigners purchased houses and apartments, mainly from the UK, France and Germany.
Another major factor in the Spanish boom has been the massive interest rate cut on mortgages. So, if in 1991 the rate was 17%, in 1995-1996 - 10-12%, then in 2004-2005 only 3.5% (one of the lowest indicators in Europe).
In 2008, with the onset of the international financial crisis, prices began to decline rapidly.
According to the results of 2010, real estate prices in Spain decreased by 6.62%, and in 2011 by another 10.59.
As of the 2nd quarter of 2012, the average price for real estate in Spain was €1,606.4 (US $1,967.5) per square meter.
At the same time, the price in the two largest cities in Spain is several times higher. As of January 2012, the average price in Barcelona when buying an apartment for 120 meters was 4046 euros per square meter, in Madrid - 4683 euros. At the same time, the cost of renting a similar apartment was 1404 euros and 1865 euros per month, respectively[4].
The average cost of land is €177.6 per square meter (first quarter of 2012).
As of September 2012, the assets of many bankrupt Spanish developers passed to their creditors and banks were forced to become the largest real estate owners in the country.
See also
Notes
- ↑ 2015 year was a turning point for the Spanish real estate market
- ↑ In April, only a third of home buyers in Spain used mortgages
- ↑ 3,0 3,1 [http://noticia.ru/allnews/nedvizhimost/srednyaya-stoimost-kvadratnogo-metra-v-ispanii-v-iyune-sostavila-1206-evro.htm. The average cost per
- ↑ , Spanish fields inching up as prices drop
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