Spanish house prices are continuing to fall, according to the recent statistics published by Tinsa. Their Spanish Real Estate Market Index shows a reduction of 9.2% during the first quarter of 2012 over the same period of 2011.
Tinsa’s index reflects the change in price per square metre of real estate using information gathered from more than 200,000 housing valuations made by the company annually. The data refers to both new and second hand properties.
The appraiser, who usually has data broken down into five major areas (‘Capitals and Major Cities’, ‘Metropolitan Areas’, ‘Mediterranean Coast’, ‘Balearic and Canary Islands’ and ‘Other Towns’), has taken “a step further to deliver a product with high statistical precision” and is now including Local Markets in the Index, which reflects the value of homes by autonomous communities and provinces.
In this new geographical division, Aragon led the declines between January and March with a fall in real estate prices in the region of 16.2%, followed by Navarra (-16%), Catalonia (-12.8%), Madrid (-11.7%) and Andalusia (-10.1%).
On the opposite side, the autonomous communities where properties depreciated less are the enclave of Melilla (-4.5%), Galicia (-5.2%), Asturias (-5.3%), Cantabria (-5.6%), Extremadura (-5.8%), the Canary Islands (-6%) and the Balearic Islands (-6.5%).
The remaining regions (Murcia, -9.6%, Castilla y Leon, -9.4%, Valencia, -9.2%, Castilla-La Mancha, -8.9%, and the autonomous city of Ceuta, -8.4%) recorded similar declines to the national average. “The Basque Country is not reflected in the list since the sample is not representative,” says Tinsa.
By province, the year-on-year decline in prices has also been widespread with the exception of Cuenca, where the variation was 0%. At the head of the decline in prices stood Almeria (-17.3%), followed by Huesca (-16.5%), Navarra (-16%), Lleida (-14%), Seville (-13.4%) and Guadalajara (-13.2%).
In addition to the aforementioned case of Cuenca, the housing prices have remained resistant to declines in Orense (-0.5%), Pontevedra (-1.7%) and Ciudad Real (-2.1%). The reductions in the first quarter of 2012 are highlighted for Madrid and in Barcelona, reaching 11.7%, and 12.4% respectively.
In total, house prices have become cheaper by almost 29% on average in recent years, reported the Director of Business Development and Marketing for Tinsa, Raul Garcia. Aragon, again, leads the ranking with a cumulative decline in the value of their property of 34.6%. Castilla-La Mancha follows with -33.9%, then Catalonia (-33.8%), La Rioja (-32%), Valencia (-30.2%) and Madrid (-30%). At the other end of the list are the autonomous cities of Melilla (-6.9%) and Ceuta (-12.8%), followed by Galicia (-15.5%), Asturias (-18.2%) and Extremadura (-19.1%).
By province, El Mundo reported that the largest negative percentage from 2007 to the first quarter of 2012 also appears in Almeria (-37.4%). Guadalajara (-36,%), Zaragoza (-36%), Toledo (-34.7%), Barcelona (-34.5%) and Tarragona (-34.5%), are the other provinces where properties have depreciated most in the last five years. The provinces with least declines are Lugo (-9.8%), Zamora (-9.7%) the autonomous city of Melilla (-6.9%) and Ourense (-5.7%).