At a national level, the price of each square meter rose by 2%, to up to 1545 Euros
The price of a square meter of housing in the Murcia Region has increased by 9 percent in the last quarter of 2017, the third largest increase per community, which is only lower than Galicia’s and Castilla y León’s, both with 10 percent, as reflected in the Gesvalt Housing Report.
At a national level, the price of a square meter of housing rose by 2% in the last quarter of 2017, up to 1545 Euros, according to the report, in which the consultant stresses that the residential property market “continues to recover and consolidate in Spain”.
The report reveals, however, an unequal growth among the autonomous communities, “due to the greater or lesser influence of tourism or the speculation that some regions underwent, where there is still a severe oversupply”, which decreases prices.
Therefore, the price of housing has increased above 5% in Madrid (7%), Galicia (10%), Catalonia (8%), Murcia (9%), Andalusia (6%) and Castilla León (10%). On the opposite end are Cantabria (-5%) and La Rioja (-2%).
In Aragon (0%), the Balearic Islands (-1%), Castilla La Mancha (3%), Navarre (2%) and the Basque Country (1%) the price per square meter has remained stable with respect to the same period in 2016.
Regions that have a lower tourism tendency or a severe accumulated oversupply have a lower land price. This is the case of Jaén, Toledo, Teruel, Ciudad Real, Ávila and Cáceres, where units are below 850 euros per square meter.
17% more transactions
The report indicates that in the last quarter of 2017, 117,068 free home sales transactions were registered, which, added to the total registered for the year, give 491,005 operations, 17% more than in 2016.
According to the Gesvalt analysis, these figures reveal “a sustained market growth”, in which prices continue to rise “looking for the best break-even point after the crisis”.
Rent, on the other hand, reached an average increase of 10% in Spain in comparison to the previous year. This superiority in the monthly quota is due to greater renters demand by younger generations, “who do not prioritize purchasing a home or do not have a sufficient income from it”.
Thus, Barcelona ranks first among the provinces with the highest rents (€ 19.22 per square meter per month), followed by Madrid (€ 16.84), San Sebastian (€ 15.30) and the Balearic Islands (€ 12.89). The most affordable leases are in Cáceres (4.14 euros per square meter per month), Cuenca (4.22 euros), Ávila (4.26 euros), Jaén (4.28 euros) and Teruel (4.33 euros).
Real estate market consolidation
The general director of Gesvalt, Sandra Daza, affirms that the study’s data shows “an upward trend” in the real estate market “that is shown quarter by quarter, although with slight fluctuations”.
“The sector reacts more slowly, but with the same sign as the economy, and this shows that prices are beginning to reflect a foreseen growth, construction is again becoming economically viable and asset prices and rents are rising faster”, she explains.
Likewise, she also states that the “real estate market consolidation” has been due to a “growth in home sales, an increase in construction visas and a decrease in new housing stocks”.