The average price of finished housing (new and used) in Spain registered an increase of 1.3% in May, thus registering five consecutive months of year-on-year increases , according to the Tinsa IMIE General and Large Markets index. The data point to a consolidation of a generalized trend of recovery at two speeds, highlighting the islands and the Mediterranean Coast.
“The average price in Spain consolidates a recovery trend with moderate growth. The islands and Mediterranean Coast groups lead the upward movement, with the highest interannual and monthly increases. In the rest of the geographical aggregates the trend is stabilization, in an environment of contained figures “, explains Andrea de la Hoz, senior analyst at Tinsa.
The islands and the Mediterranean Coast, the biggest increases in the average price in interannual rate
The analysis -which divides the territory into five large areas that represent the main strata that make up the housing market- shows how all the areas analyzed reflect growth in their average values compared to May of last year, although the largest increase corresponds to the islands , with an increase of 4.6%, followed by the Mediterranean Coast, with a year-on-year increase of 3.2% in the month of May .
Below the national average, according to data from Tinsa, the price of housing in capitals and large cities (with more than 50,000 inhabitants) leaves a growth in the last year of 0.4%. The average value in the metropolitan areas group registered an increase of 0.2% year-on-year in May, after growing by 1.7% last month .
The smaller municipalities located in the interior of the peninsula and on the Atlantic coast (grouped in other municipalities) “consolidate a contained upward trend and moderate the figures of the previous month,” says de la Hoz. The average value in this group fell by 2% between April and May, leaving the year-on-year growth in May at 1.1% .
Balance of the year
The average price in Spain has experienced a year-on-year growth of 0.8% in the first five months of the year , with the Islands and the Mediterranean Coast standing out as the most dynamic areas, with an average year-on-year increase of 4.3% and 2.1%, respectively. Despite the moderate recovery experienced by capitals and large cities, their average variation so far in 2021 is slightly negative (-0.7%), according to Tinsa.
Housing in Spain has appreciated 20% from its 2015 lows
The index data, calculated from the finished home appraisals carried out by Tinsa, show that housing in Spain has appreciated 20% from its minimum registered in February 2015 and remains 31.1% below the price maximum reached in 2007 .
Second hand housing
For its part, the price of second-hand housing rose 0.8% year-on-year in Spain in May , according to data from the Fotocasa Real Estate Index, to stand at 1,893 euros / m2. This increase represents the seventh year-on-year rise in house prices after chaining 11 months of year-on-year declines (from December 2019 to October 2020).
“Although the price of housing continues to rise, the truth is that it is doing so at a more moderate pace. This temperance could be a sign that the great boom in buying housing detected after the lockdown is calming down as the real estate sector It is responding to the demand that has arisen and the transactions are being completed “, says María Matos, Director of Studies and Spokesperson for Fotocasa.
The price of second-hand housing rose in nine autonomous communities in May compared to the previous month, leading the largest increases in the Valencian Community (1.8%), Andalusia (0.8%) and Castilla-la Mancha (0.7 %) . Madrid and the Basque Country, despite the fact that both regions have registered a monthly decrease of 0.1%, are the regions with the most expensive second-hand housing prices in Spain with prices of 3,099 euros / m2 and 2,859 euros / m2, in each case.
Regarding the provinces analyzed, in 50% of them the price rose in May, with the highest rise in Valencia (5%) and Soria (4.9%). On the other hand, the capitals that registered the greatest monthly increases were Soria (4.0%), Girona (2.6%), Toledo (2.5%) . On the other side of the scale, the largest Huesca and Jaén led the biggest declines in May, with falls of 3.3% and 2.4%, respectively.