The housing market in Spain at three different levels
The housing market in Spain at three different levels
Madrid and Barcelona provinces are the driving force of the housing market recovery.
The Euroval appraisal report, on which this is article is based, draws a very fragmented scenario for housing from 2014 to end of 2019, since the evolution of prices, far from being uniform, has followed very different paths, moving at three different levels.
The highest of these levels has been registered mainly in Madrid and Barcelona, which are the two Spanish cities that have acted as true engines of the housing price recovery. Both more than double the national average, with increases for the five-year period under review of 32.2% (from €2,014 per square metre to €2,664/m2) and 30% (from
€1,885 to €2,450) respectively.
Second level
Málaga (up 24.1%: from €1,480 to €1,837), the Balearic Islands (23.9%: from €1,896 to €2,349) and Las Palmas (22.1%: from €1,325 to €1,618).
The island of Santa Cruz de Tenerife (18.6%: from €1,220 to €1,447) and the autonomous city of Melilla (15.4%: from €1,461 to €1,687) closed this high-level group.
In the intermediate level group are a total of 26 provinces, of which only seven exceed half the national average increase: in the last five years, the price per m2 has risen by 12.9% (from €1,459 in 2014 to €1,647 in 2019).
Valencia, with a rise in the price per square metre since 2014 of 10.1% (from €1,066 to €1,174), leads, followed by Alicante (8.1%: from €1,208 to €1,306) and Navarra (7.2 %: from €1,321 to €1,416). They are followed by Zaragoza (6.7%: from €1,222 to €1,304), Gerona (6.5%: from €1,436 to €1,530), Valladolid (6.5%: from €1,163 to €1,238) and Lugo (6.5%: from €814 to €867).
And in the lowest tier are almost 40 Spanish provinces, which represents, after five consecutive years of recovery in residential demand, a balance between neutral and negative growth.
There are only two provinces with a flat graph over this five-year period, Almería (the average price per m2 in 2019 remains the same as in 2014: €1,107) and Orense (€949).
Third level
The rest, a total of 18 provinces, have a negative evolution over this period.
Segovia is the Spanish province where the average price per m2 has lost more value since 2014, down by 7.7% (from €1,056 to €975). It is followed, in decreasing order, by Soria (-6.4%: from €1,080 to €1,011), Cuenca (4.7%: from €819 to €781), Ciudad Real (-4%: from €786 to €755), Ávila (-2.6%: from €864 to €841), Vizcaya (-2.5%: from €2,393 to €2,334), Ceuta (2.2%: from €1,778 to €1,739 euros), Teruel (-2, 2%: from €803 to €785), Guipúzcoa (2%: from €2,723 to €2,670), León (-1.9%: from €893 to
€876), Álava (-1.7%: from €1,993 to €1,959), Cantabria (1.7: from €1,497 to €1,472), Huelva (-1.6%: from €1,106 to €1,088), Principality of Asturias (-1.5%: from €1,310 to €1,291), Burgos (-1.3%: from €1,145 to €1,130), Palencia (0.7%: from €1,017 to €1,010), Murcia region (-0.6%: from €997 to €991) and Huesca (0.1%: from €1,162 to €1,161).
Stock rises for the first time since 2013
The InmoCoyuntura Report, also prepared by Euroval, analyses how Spanish residential stock has evolved from 2004 to the present. According to the estimates collected in the report, 2019 marked a turning point in the reduction of stock that had accumulated during the years of the property boom.
For the first time since 2013, this has increased with respect to the previous year, by around 3%, to stand at 475,532 units, 15,656 more than in 2018.
In this way, the residential stock in Spain remains at levels similar to those 2017, when there was a total of 476,938 homes, but remains far from the maximum of 683,033 homes reached in 2008.