Spain House Prices Register Biggest Rise Since 2007

House prices in Spain increased by 6.3% in the first quarter of 2016, year-on-year, representing their biggest rise since the third quarter of 2007, when prices increased by 9.2%, according to the latest House Price Index data published by the National Statistics Institute.

This latest increase, which is over two points higher than the increase registered in the fourth quarter of 2015 (4.2%), is the eighth consecutive quarter in which housing prices have registered positive annual rates.

By type of dwelling, the price of new housing rose by 6.1% compared with the first quarter of 2015 – its biggest increase since the first quarter of 2008 – while the price of second hand housing increased by 6.4%, registering its most significant growth since the third quarter of 2007.

Quarter-on-quarter (first quarter of 2016 over fourth quarter of 2015), house prices increased by 1.5%, thus returning to positive rates after registering a decline of 0.1% in the fourth quarter of last year.

Between January and March, new housing prices increased by 2.6% quarter-on-quarter, which is 1.3% more than in the previous quarter, while the price of second hand housing experienced a quarter-on-quarter rise of 1.3%, in contrast to the 0.3% decline registered in the previous quarter.

El Mundo reported that all of Spain’s regions registered positive year-on-year rates in the price of housing during the first quarter. The greatest increases registered in the first quarter, over the same period of 2015, were those for Madrid (9.7%) and the Balearic Islands (8.8%), while the smallest increases were registered in Castilla-La Mancha (1.5%), Castilla y León (1.7%) and Extremadura (1.7%).