Only the group “Capitals and Large Cities” increased in average values in October in respect of the same month of the previous year. The growth in annual rates in this group of municipalities was 1.6%. In turn, the “Mediterranean Coast” and smaller locations (“The Remaining Municipalities”) registered slight falls of 0.6% and 0.4%, respectively.
The situation of the residential market continues characterised by stability. “We maintain our prediction that the year will close with an increase in prices, predictably below 5% on average. This does not rule out the fact that in certain areas there will be a more consolidated upward growth, as in the case with the cities of Madrid and Barcelona. Medium and long term development will depend on the economic situation”, affirmed Jorge Ripoll, Director of Study Services at Tinsa.
Price growth of 2.2% during October
The average price of a completed house in Spain has maintained a positive balance over the year. Accumulated growth since January of 2.2%, was driven by the “Capitals and Large Cities”, which revalued 3.3% over the first ten months and by the island markets (“Balearics and Canaries”), which have reached 3.8% so far in 2016. Only the “Metropolitan Areas” have slightly depreciated since Januarys (-0.6%), while the rest of the groups on the index growth since January is at about 2%.
Average fall of 40% since maximum levels
If price changes are analysed from their highest point in the cycle, in 2007, the average price in Spain shows an accumulated fall of 40.5%. The decrease is, however, greatest on the “Mediterranean Coast”, where it reached 47% since its maximum, followed by the “Metropolitan Areas”, with a decrease of 45.4%, and the “Capitals and Large Cities” with 43.6%. The average price on “Balearics and Canaries” has dropped below the Spanish average (-30% since 2007), equal to the “Remaining Municipalities”, where the accumulated decrease is 36.8%.