The figures for the first quarter of this year, shows that house prices in almost all of Spain continues to rise for the fourth consecutive quarter.
The Spanish property prices over the past year increased by 2.4 percent. The figures comes from the Ministry of Development in Spain “, Ministerio de Fomento”. The figures for the first quarter of this year are compared with the first quarter last year and are based on a sample of over 110,000 transactions. The average price per square meter is 1,492 euros. Compared with the previous quarter, the prices have risen by 0.2 percent.
The highest annual price increase is found on the Balearic Islands, where Mallorca is the largest market. They have had a price increase per square meter of 9.6 percent. Then follows Catalonia (4.9%), Madrid (4.2%), Extremadura (3.7%) and Galicia (2.6%). In Comunidad Valenciana on Costa Blanca the price increase is equal to the Spanish National average. The same applies to the Canary Islands, according to El País.
The only areas where property prices have decreased are La Rioja (-2.2%), Basque Country (-1.9%), Cantabria (- 1.3%), Aragon (-0.1%) and Ceuta and Melilla ( – 0.3%).
According to the property portal idealista.com they expect a ten percent increase in property sales this year. According to them, the number of transactions will increase to 440,000, an increase of nearly 40,000 compared to last year. This will mean a reduction in the stock of unsold new homes with up to 25%.
Julian Cabanillas, president of Servihabitat, believes that this would entail a consolidation of the property market in a “moderate but sustained pace.”