House prices falling at a slower rate

Barcelona real estate Blog

Thursday, 21 April 2011 09:28

According to data provided by El Preciómetro, the price index of real estate and home portal facilisimo.com, housing price in Spain fell by 1.32% during the first quarter of 2011, posting a year decline in the last twelve months of 4.14%.

Comparing the first quarter of 2011 with the same period of 2010, they note that the cumulative price drop in the first three months of this year (-1.32%) is more than half a point lower than in the first quarter of last year (-1.87%), confirming a trend toward moderation in the decline in house prices we are already noting since summer 2010...

Regarding the price of land, a square stood at 2014€ during the first quarter of 2011, so on average a house of 70 m2 on average has a current market price of 140,980 euros.

Extremadura was the autonomous region where it was cheapest to buy a home at the start of the year with a price of 1,094 € / m2, followed by Castilla-La Mancha (1,268 € / m2), Galicia (1,545 € / m2) Murcia (1,563 € / m2), Castilla y León (1,573 € / m2), Asturias (€ 1,647 / m2), Valencia (1,650 € / m2), Canary Islands (1,680 € / m2), Andalusia (1,789 € / m2 ), La Rioja (1,892 € / m2) and Aragon (1,965 € / m2).

Above the national average of € 2,014 / m2 are Navarra (€ 2,091 / m2), Islas Baleares (€ 2,233 / m2), Cantabria (2,287 € / m2), Catalonia (2,621 € / m2), Madrid (€ 2,739 / m2) and finally, the Basque Country, with 3,300 € / m2.

Regarding the evolution of house prices during the first quarter, three regions have seen an increase in property prices: Balearic Islands (+3,38%), Castilla y León (+2,28%) and the Rioja region(+1,39%).

Elsewhere, the declines have been widespread, especially in Asturias (-5.13%), Aragon (-5.07%), Canary Islands (-4.05%) and Galicia (-3.86%). Fall behind Cantabria (-2.64%), Murcia (-2.13%), Catalonia (-1.87%), Basque (-1.70%), Valencia (-1.26%) , Andalucía (-0.72%), Castilla-La Mancha (-0.63%), Madrid (-0.36%), Extremadura (-0.36%) and Navarra (-0.24%).

According to Juanra Doral, CEO of facilisimo.com, "Even if the trend of stabilization we have seen in recent months continues, will have to observe how it is influenced by the rise in Euribor and employment data. Both are slowing the housing market. "

Provincial Analysis

During the first three months of the year, the price of housing has fallen in 31 Spanish provinces, with notable declines like Soria (-10.6%), Ourense (-7.47%) and Lugo (-6.81 %). For its part, saw 18 provinces if the price of their property during the first quarter of 2011, with major increases registered as Zamora (+11,33%), Segovia (+9,19%) and Palencia (+ 5.97%).

Regarding land prices, the provinces of Ourense (1,090 € / m2), Badajoz (1,094 € / m2) and Soria (1,130 € / m2) were the cheapest when you buy a house, prices that are far other provinces Guipúzcoa (3,456 € / m2), Vizcaya (€ 3,348 / m2) and Barcelona (2,932 € / m2), the most expensive regions in Spain.

Catalonia

The price of housing in Catalonia fell 1.87% during the first quarter of 2011, slightly less than the rest of the national average, which reached -1.32%.

Of the four provinces that make up this community, two of which closed the first three months of the year with price declines, were property in Barcelona (-2.46%) and Girona (-0.18%). The other two provinces, Lleida (+1,03%) and Tarragona (+0.37%), it suffered a rise in the price of their property.

For municipalities, noteworthy drops in Montcada i Reixac (-8.52%) and Badalona (-8.26%), while other towns like Lleida (+6,82%) and Mataro (+5,07%) are increasing in importance.

Madrid

During the first quarter of the year, housing prices dropped in the community of Madrid by only 0.36%, well below the national of 1.32%.

In the case of capital, the situation was very different, showing a rise of 0.56%, leaving the price per square meter in the big city at 3,217 euros.

Alcobendas (+3,86%), Valdemoro (+3.17%) and Aranjuez (+2,58%) have starred in major increases in the first quarter, a promotion that contrast with the fall of Alcorcón (-4.72 %) Parla (-4.59%) and Alcalá de Henares (-3.68%).

Original article in Spanish