House Prices Down Most in Toledo and Barcelona
January 25th, 2013
According to the latest data released by real estate valuation company, Tinsa, Toledo is the province where house prices have fallen most since the end of the property boom, with a drop of 45.5%, followed closely by the provinces of Barcelona (44.4%), Zaragoza (44.2%), Guadalajara (44.2%), Tarragona (43.1%) and Malaga (42.6%).
In all these provinces houses are now valued at the same prices they were a decade ago, said Tinsa, which means that the average depreciation of homes in Spain in the fourth quarter of 2012 reached 12%, and that the price drop was sharper at the end of the year than at the beginning, reaffirming its downward trend, since it registered an average fall of 9.2% in the first quarter and 11.5% in the second and third.
El Mundo reported that in 2012, the drop in house prices accelerated in Catalonia (-17.1%) and Madrid (-14.7%), followed by Castilla-La Mancha -14.6%. Also registering significant decreases were Valencia and Murcia, at -14% and -13.9% respectively.
Last year, Andalusia, the region where most homes are sold in Spain, dropped its prices by 12.5%, in line with other regions such as Aragon (-13%), the Balearic Islands (-12.8%), Castilla y Leon (-12.5%), Galicia (-11.6%) and Cantabria (11.6%), while prices in the rest of the country fell more slowly.
Tinsa, which has a database of 4 million property sales transactions – 25% of which were made in Spain – also assess the progression of prices since their peak in December 2008. Since then, the region where prices have lowered most is Castilla-La Mancha (-43.2%), followed by Catalonia (-42.5%), Aragon (-41.7%), Valencia (-38.6%), La Rioja (-38.4%) and Madrid (-37.2%). In contrast, prices have fallen least in Asturias (-19.4%) and Extremadura (-23.3%).
The most significant changes noted in 2012 were registered in the provinces of Tarragona (-18.7%), Barcelona (-18.5%) and Malaga (-17.3%).
Orense is the only Spanish province in which prices rose last year (+4.6%), while among those provinces where the drop in prices was more moderate, are Lugo (-1.8%), Soria (-1.9%) and Asturias (-2.0%).