The price of used housing in Spain rose 1.7% during the second quarter of 2019. This rise means the average house price in Spain per square metre is 1,733 euros, which is 161 euros per square foot, according to the latest idealista price index. Taking into account the annual variation, this is an increase of 6% on last year.
According to Fernando Encinar, Head of Research at idealista, “The pattern we saw in the previous quarter is being repeated. Housing prices continue to go up across the board, although the rate of increase is much lower. It’s worth noting some exceptions, such as the Spanish islands, where the strength of the tourist industry continues to put pressure on prices. Also striking is the situation in Barcelona, where for the first time since June 2014 prices have declined year-on-year. Although very moderate, this could mark a turning point in the Catalan capital.
“In any case, it will be necessary to wait a few months to see how housing policies at the municipal, regional and national levels will affect the development of real estate prices in Spain.”
There were 13 Autonomous Communities that saw property prices rise during the spring: the largest increase was in Andalusia, where owners are asking 4.3% more for their homes than three months ago, followed by Valencia, where prices have increased by 3.1%, and Murcia (2.8%). These are followed by rises in Aragon (2.6%), Madrid (2.5%) and Melilla (2.2%). Meanwhile, Navarra saw the greatest fall with a decrease of 1.5%, followed by Ceuta, where prices fell by 1% and Asturias (-0.9%).
The Balearic Islands continue to be the most expensive autonomous region in Spain, with an average house price of 3,016 euros/m2 (280 euros/sq ft). Then comes Madrid (2,826 euros/m2 or 266 euros/sq ft), the Basque Country (2,563 euros/m2 or 238 euros/sq ft) and Catalonia (2,256 euros/m2 or 210 euros/sq ft). The cheapest autonomous communities in Spain are Castile-La Mancha (871 euros/m2 or 81 euros/sq ft), Extremadura (902 euros/m2 or 84 euros/sq ft) and Murcia (1,026 euros/m2 or 95 euros/sq ft).
Up to 29 of the 50 provinces in Spain experienced price increases in terms of second-hand properties during the second quarter of 2019. These increases are led by Teruel (6.5%), followed by Malaga (4.9%), Girona (4.8%), Lleida (3.7%) and Zaragoza (3%). However, there were price drops in the provinces of Navarre (-1.5%), Salamanca (-1.3%) and Burgos (-1.2%).
The ranking of the most expensive provinces is headed by the Balearic Islands, with 3,016 euros/m2 or 280 euros/sq ft, followed by Gipuzkoa (2,905 euros/m2 or 270 euros/sq ft). After them come Madrid (2,826 euros/m2 or 263 euros/sq ft) and Barcelona (2,693 euros/m2 or 250 euros/sq ft). Toledo is the cheapest province to buy a house in Spain (768 euros/m2 or 71 euros/sq ft), followed by Cuenca (799 euros/m2 or 74 euros/sq ft) and Ciudad Real (805 euros/m2 or 75 euros/sq ft).
Cuenca is the capital of a Spanish province where prices have risen most, with an increase of 4.7%. It is followed by Santa Cruz de Tenerife and Granada, where asking prices increased by 3.7%. Among the large markets, prices in Palma have increased by 3.2%, while in Madrid the rise has remained at 2.4%. In the city of Barcelona the fall was 0.3%.
The biggest drop was in Pontevedra (-2.2%). This is followed by decreases in Castellon (-1.5%), Guadalajara (-1.3%), Ceuta (-1.1%), Ourense (-1.1%), León (-1%) and Pamplona (-0.9%). Prices also fell in Oviedo (-0.5%), Burgos (-0.4%) and Las Palmas de Gran Canaria (-0.1%).
San Sebastián is the most expensive Spanish regional capital (4,372 euros/m2 or 402 euros/sq ft), followed by Barcelona (4,206 euros/m2 or 391 euros/sq ft), Madrid (3,810 euros/m2 or 354 euros/sq ft), Palma (2,947 euros/m2 or 274 euros/sq ft) and Bilbao (2,921 euros/m2 or 271 euros/sq ft). The cheapest Spanish capital city is Ávila, with a price of 1,016 euros/m2 or 94 euros/sq ft.
The idealista property price index
Starting with the report for the first quarter of 2019, we’ve updated the methodology we use to create our reports at idealista. Thanks to the new incorporation of idealista/data, new formulas have been included that make the analysis of price developments even more robust, especially in small areas. To avoid getting spikes in our data series, all the data since 2007 have been recalculated using the new methodology.
On the recommendation of the idealista/data statistical team, we updated the formula to find the average price with greater certainty: as well as getting rid of non-representative property listings and those with wildly different prices from the market average, we calculated the median value instead of the mean value. This change further refines our price reports to reflect market realities and standardises our methodology with those applied in neighbouring countries to obtain real estate data.
From now on, we are including the typology of single-family houses and discarding any type of property that has been in our database for a long time without having any user interaction. The report continues to be based on asking prices of properties published on idealista.
Published first by Idealista.com