Housing in Spain is 3% more expensive than last year, according to data from the Tinsa appraiser, but the rise shows clear signs of slowing down: prices rose at a rate of 4.9% year-on-year in the first quarter and of 5.8% in the quarter of 2018. Furthermore, in the last quarter the rise has slowed down in most of Spain and prices have fallen in 28 provinces compared to March levels.
The slowdown has hardly been noticed in Madrid (the price rises 1.7% in the quarter), but strongly in Barcelona, where prices have dropped 1.7% compared to the first quarter, so that they are only one 1.6% more expensive than a year ago.
The national average price chains with this eleven consecutive quarters of increase
“There are signs of stabilization both in price and in demand, after several years of sustained recovery. The general level of residential prices in Spain is practically identical to that of the first quarter of the year. The cities of Madrid and Barcelona, which have starred in strong and continuous increases in recent years, have unequivocally decreased their upward trend, "said Rafael Gil, director of the Tinsa Research Service, in a statement.
Tinsa, who studies the prices of finished, new and second-hand housing, highlights that the average price in Spain is now 1,350 euros / square meter, only 1 euro more than in the first quarter and 3% higher than it does one year. The national average price chains with this eleven consecutive quarters of increase. Among the main provincial capitals, only Valencia increased its prices by more than 10% year-on-year. In others such as Palma de Mallorca, Zaragoza and Seville, the increase exceeds 8%, while it is 6.6% in Madrid.
The price slowdown occurs when in much of Spain the real estate recovery has barely begun. Thus, on average, housing has increased in Spain by 12% from the low that it hit in the crisis, and remains 34.1% below the highs of 2007. The average value of a flat does not even reach half the maximum reached in the past decade in Toledo, Guadalajara, Cuenca, Tarragona and Castellón. The cumulative fall in prices in these provinces since 2007 exceeds 50%.
In Madrid and Barcelona prices have risen 51% from the lows of the crisis
The situation is reversed instead, in the cities of Madrid and Barcelona, where prices have risen by 51.3% and 51.1%, respectively, since their crisis lows. Until this quarter, Barcelona led the price rises, but the drop in recent months has led it to be overtaken by Madrid.
In the second quarter, the most expensive capitals in the country continue to be San Sebastián (3,449 euros / square meter), Barcelona (3,333 euros / square meter) and Madrid (3,013 euros / square meter), followed at a distance by Bilbao and Palma de Mallorca . Among the cheapest are Lugo, Castellón, Ávila and Teruel, all below 950 euros / square meter.
In the large capitals, the greatest price increases are taking place in the peripheral districts and in the cities around them, where prices have not grown as much in recent years. Thus, compared to an average year-on-year rise of 1.6% in Barcelona, prices have risen 6.2% in Nou Barris and 9.3% in Sant Andreu. Among the most fashionable neighborhoods, prices drop 2.6% in Ciutat Vella, but continue to rise at stronger rates in Gràcia (8.4%) and Sant Martí (6%). In Madrid, meanwhile, the 6.6% rise on average is doubled in Carabanchel (14.3%), Vicálvaro (15.3%) and also in Salamanca (11.1%), the district that attracts the most number of investors to the capital.
The rise in housing forces Spaniards to allocate, on average, 20.2% of their family income to pay the mortgage payment. The average mortgage in Spain stood at 123,282 euros in the first quarter of 2019, with an average share of 579 euros. In the cities of Madrid and Barcelona the average financial effort is 21.1% and 25.8%, respectively. The highest monthly mortgage payment is registered in the provinces of the Balearic Islands (830 euros), followed by Barcelona (791 euros), well above the average payment made in Cuenca (359 euros), Jaén (357 euros) and Badajoz ( 347 euros), provinces with the lowest quotas.