Spanish property prices rose by 3.3 per cent in 2016, the highest rate for almost a decade, new figures show.
The recently released end-of-year report issued by Spanish property valuation firm ST Tasacion reveals that house prices rose in all of Spain’s 17 regions last year.
Madrid led the way in terms of price growth, with prices growing by 3.8 per cent over the year. Catalonia (3.5 per cent) and the Balearic Islands (1.6 per cent) also saw healthy annual growth, although growth remained minimal in some regions. For example, Cantabria saw prices rise by just 0.2 per cent, while Asturias and Aragon fared little better, recording rises of 0.3 and 0.4 per cent respectively.
The highest average prices in Spain are currently seen in the city of Barcelona. The report reveals that average prices in the city are currently 3,618 euros per square metre, placing it ahead of San Sebastian and Madrid where the average values are 3,327 euros per square metre and 2,966 euros per square metre respectively.
The cities with the lowest average property prices are Caceres (1,127 euros per square metre), Badajoz (1,140 per square metre) and Ciudad Real (1,153 per square metre).
By autonomous Community, Catalonia (3,164 euros/sqm), Madrid (2,966 euros/sqm) and the Vasque Country (2,532 euros/sqm) present the highest levels in prices of new residential property. Castilla la Mancha (1,372 euros/sqm), La Rioja (1,336 euros/sqm), Murcia (1,196 euros/sqm) and Extremadura (1,135 euros/sqm) show the lowest prices.
The ST Tasacion report reveals that the growth in 2016 came about due to various factors, including a significant increase in the number of transactions, the recovery of off-plan sales, the growing possibilities of receiving mortgage loans, and economic improvement.
If these conditions persist in 2017 the market may see more growth throughout the coming 12 months, the report predicts.
Article published 4th January 2017