The price of real estate has increased by 20% in 4 Spanish capitals
11 May 2018
Despite a generally positive first quarter of 2018 in Spain, since real estate has been upgraded by 3.8%, there remain significant differences between the major capitals of the Spanish provinces. According to a recent Tinsa / OPEA study, the growth of some cities reaches 17% while others fall by -11.9%.
Since the beginning of 2018, the cities of Madrid and Palma de Mallorca have increased their real estate value, compared to the same period in 2017. Thus the Spanish capital has experienced an interannual growth of 17% and that of the Balearic Islands of 14.7%. In third place, we find Barcelona with 11% who is still suffering the consequences of the political crisis.
Other cities, too, advanced during this first quarter. Thus, Pamplona closes the cities with growth of more than 10% over this period (10, 4%), and is followed by Valencia and Seville which increased their value by 8.5% and 8.8% respectively. If the latter have less impressive lower figures, it is partly because the recovery of the real estate market affected them later than for others.
Some markets have remained less dynamic for this first part of the year, and some cities have even seen their value fall since 2017. The most striking examples are those of Ciudad Real (-11.9%), Cáceres (-9, 2%) and Guadalajara (-6.3%).
Barcelona regains its position as the most expensive city
While it was outpaced in the last quarter of 2017 by San Sebastian, Barcelona again became the most expensive capital in early 2018 with an average price per square meter of € 3,174. San Sebastian is therefore second this quarter, with 3,165 euros per square meter, and Madrid is third, 2699 euros per square meter.
The list of cheapest cities is composed of Castellón (€ 851 per square meter), Lleida (€ 889 per square meter) and Zaragoza (-57.5%).
20% growth in several major capitals
The strong price growth last year has characterized all areas of the Spanish capital. 15 of the 21 districts of Madrid saw their average value increase by more than 10%, and even by 20% for Salamanca, Moratalaz and Centro.
In Seville, the trend is also very positive. The Sur and San Pablo-Santa Justa districts, with increases of 11.7% and 11.1% respectively, recorded the largest increases in the first quarter of 2018. Only one district, the North district, experienced a decline compared to the same period last year, it is 1.1%.
The end of Barcelona's chaotic year moderated the growth of the city's real estate market, but did not lead to a significant drop in prices. However, the average interannual value remains moderate and only the districts of Sant Martí and Sants-Montjuic are approaching a growth of 20%.