House prices rise by 1.2% at the end of 2016

House prices rise by 1.2% at the end of 2016

After the small decrease in the previous trimester due to seasonal factors, we have returned to small yearly increases. Thus, a house with an average area of 90 m² reached a value of 108,630 euros in the fourth term of 2016, slightly above the 107,280 euros of2015. 

Luis Martín Guirado, Corporate Director of Development and Business at Gesvalt, maintains that the price of a house will continue to rise in the following years in the main capitals of Spain, mainly due to “increase in demand, house purchases and, also, thanks to improvements in the financial situation of buyers”.

Cities with the highest values per square metre are: San Sebastián (3,400 €/m²), Alcobendas (2,898 €/m²) and Getxo (2,752 €/m²). On the other hand, populations with the lowest values are: Linares (655 €/m²), Lérida (712 €/m²), and Ferrol (749 €/m²). 

At the autonomous level, for the first time since 2006/2007 the number of autonomous communities with year on year higher values is more than than those with continuing declining values.  The biggest increases were in Aragón, with 13% and the Communities of Madrid, Asturias and País Vasco, all with increases of 8%. In contrast, Galicia (-10%), Castilla León (-3%) and Andalucía (-2%) show the greatest decreases. Gesvalt states that these figures reflect that fact that value increases in some provinces and communities make up for the decline in others, with numbers at national level maintain their average.

Of the 16 autonomous communities, 10 of them show an increase of no more than 13%, compared to six communities with lower values than the previous year, the biggest fall being 10 %, in Galicia.

It is of note that of the seven communities with lower yearly values, there are three where the drop is under 1%: Cataluña (-0,2%), the Canaries (-0,5%) and Extremadura (-0,6%).

In general, small readjustments can be observed at the provincial level. 24 provinces recorded increases compared to 26 with insignificant decreases. Provinces like Madrid, Barcelona, Vizcaya, Guipúzcoa and Málaga show several terms with increased values.

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