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The housing market in Spain at three different levels

Madrid and Barcelona are the locomotive provinces of housing recovery.

The Euroval appraiser 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 the price, far from being uniform, has followed very different paths, until moving at three different levels. The highest of these levels has been registered mainly in Madrid and Barcelona with increases of 32.2% and 30%, respectively, in five years.

These are the two Spanish cities that have acted as true engines of the recovery in the housing price. Both Madrid and Barcelona more than double the national average, with increases for the period under review of 32.2% (from 2,014 to 2,664 euros) and 30% (from 1,885 to 2,450 euros), respectively.

 

 Second level.

Malaga (24.1%: from 1,480 to 1,837 euros), the Balearic Islands (23.9%: from 1,896 to 2,349 euros) and Las Palmas (22.1%: from 1,325 to 1,618 euros). The island of Santa Cruz de Tenerife (18.6%: from 1,220 to 1,447 euros) and the autonomous city of Melilla (15.4%: from 1,461 to 1,687 euros) 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 of m2 has risen 12.9% (from 1,459 euros in 2014 to 1,647 euros in 2019).

Valencia, with a rise in the price of the square meter since 2014 of 10.1% (from 1,066 to 1,174 euros), leads it, followed by Alicante (8.1%: from 1,208 to 1,306 euros) and Navarra (7.2 %: from 1,321 to 1,416 euros). Zaragoza (6.7%: from 1,222 to 1,304 euros), Gerona (6.5%: from 1,436 to 1,530 euros), Valladolid (6.5%: from 1,163 to 1,238 euros) and Lugo (6.5%: from 814 to 867 euros).

And in the last level is almost 40 of the Spanish provinces, which presents, after five consecutive years of recovery in residential demand, a balance between neutral and negative growth. With a flat graph in this five-year period, there are only two provinces Almería (the average price of its square meter in 2019 remains the same as in 2014: 1,107 euros) and Orense (949 euros).

 

Third level.

The rest, a total of 18 provinces, have a negative evolution in this period. Segovia is the Spanish province where the average price per square meter has lost more value since 2014, -7.7% (from 1,056 to 975 euros). They are followed in decreasing order, Soria (-6.4%: from 1,080 to 1,011 euros), Cuenca (-4.7%: from 819 to 781 euros), Ciudad Real (-4%: from 786 to 755 euros), Ávila (-2.6%: from 864 to 841 euros), Vizcaya (-2.5%: from 2,393 to 2,334 euros), Ceuta (-2.2%: from 1,778 to 1,739 euros), Teruel (-2, 2%: from 803 to 785 euros), Guipúzcoa (-2%: from 2,723 to 2,670 euros), León (-1.9%: from 893 to 876 euros), Álava (-1.7%: from 1,993 to 1,959 euros), Cantabria (-1.7: from 1,497 to 1,472 euros), Huelva (-1.6%: from 1,106 to 1,088 euros), Principality of Asturias (-1.5%: from 1,310 to 1,291 euros), Burgos (-1.3%: from 1,145 to 1,130 euros), Palencia (-0.7%: from 1,017 to 1,010 euros), Region of Murcia (-0.6%: from 997 to 991 euros) and Huesca (-0 , 1%: from 1,162 to 1,161 euros).

Stock rises for the first time since 2013.

The InmoCoyuntura Report prepared by Euroval also analyses how the Spanish residential stock has evolved from 2004 to the present. According to the estimates collected in the report, 2019 has marked a turning point in the reduction of the accumulated stock during the years of the property boom. For the first time since 2013, this has increased with respect to the previous year, 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 476,938 homes were reached, but far from the maximum of 683,033 units reached in 2008.

 

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