Spain’s House Prices Record Lowest Decline in Three Years
December 3rd, 2013
Some positive news on the housing market in Spain. Just a few days ago the Ministry of Development published the finding that the number of home sales had fallen by only 6.8% between July and September. Now they have announced that the price of private housing fell by only 4.5% in the third quarter of 2013, compared to the same period of 2012, which is the most moderate decline recorded since the end of 2010 and early 2011.
Specifically, the average cost per square metre of private housing stood at 1,495.3 euros, which is 4.5% less than a year ago (1,565 euros per square metre) and almost the same level as three months ago (1,481 euros per square metre). According to the Ministry’s historical statistical series, the average price per square metre has fallen 28.8% since its peak in the first quarter of 2008 (when it stood at 2,101 euros per square metre).
Four regions registered increases in housing prices, year-on-year: the Balearic Islands (4.8%), Navarra (4.3%), Extremadura (2.8%) and Madrid (0.3%), while in the Basque Country the prices remained the same as a year ago. At the other end, registering the largest declines, year-on-year, were: La Rioja (-12.6%), Cantabria (-10.7%), Aragon (-10.5%), Asturias (-10.1%) and Catalonia (-8.9%).
With regard to the age of the property, the cost of housing over two years old has decreased year-on-year by 5.2% to 1,472.7 euros per square metre, which is more than double the depreciation of new builds (up to two years old), which has fallen by 2.5% (to 1,564 euros per square metre).
For municipalities with over 25,000 inhabitants, the highest prices were recorded in San Sebastián (3,407 euros per square metre), Getxo (3,119.9), Bilbao (2,657.6), Alcobendas (2,618.6), Ibiza (2,573.2), Calvia (2,533.8), Leioa (2,509.1), Sant Cugat del Vallès (2,494.4), Basauri (2,493) and Barcelona (2,466.3). In contrast, the most affordable housing is found in Jumilla (591 euros per square metre), Elda (604.6), Algemesí (630.9), Ontinyent (655.3), Tomelloso (660) and Yecla (668.6).