House Prices Rise by 2% Accumulating Five Quarters of Increases

The average price of housing in Spain rose by 2% in the second quarter of the year, to stand at 1,506.4 euros per square metre, which represents a moderation compared with the 2.4% increase registered in the first quarter.

However, with the latest figure, house prices have accumulated five consecutive quarters of year-on-year increases, according to the statistics published by the Ministry of Development from Sociedad de Tasación data.

In real terms, discounting inflation, the price of housing has experienced year-on-year growth for the seventh consecutive quarter, reaching an annual increase of 2.9%.

According to the Ministry’s statistics, the average value per square metre in the second quarter was 28.3% below the maximum level reached in the first quarter of 2008. Since the minimum value registered in the third quarter of 2014, average prices have recovered by 3.5%. In real terms (including the CPI variation) the current price reflects a drop since the maximum values of 34.7%.

El Economista reported that rising second hand housing prices drove the increase in average house prices in the second quarter, since the price of new builds rose by just 0.8% between April and June.

Specifically, housing over five years old rose by 2.2% in the second quarter of the year, to stand at an average of 1,500.2 euros per square metre, while the average cost of newly constructed housing stood at 1,746.8 euros per metre following the aforementioned increase of 0.8%.

Some 10 of Spain’s regions registered year-on-year growth in average house prices, led by the Balearic Islands (+5.9%), followed by: Madrid (+4.8%); Catalonia (+4.6%); the Canary Islands (+2.9%); Extremadura (+2.4%); the autonomous cities of Ceuta and Melilla (+2.3%) and Galicia (+1.4%).

In contrast, the remaining regions still registered year-on-year declines, especially Navarra (-2.2%), Aragón (-1.9%), the Basque Country (-1.7%) and Cantabria (-1.3%).