According to data published on Thursday by Spain's Ministry of Development, the average value of free market housing in Spain reached 1,618.8 euros per square metre in the fourth quarter of 2018. This represented a year on year increase of 3.9% and was the fifteenth consecutive quarterly increase. The research was based upon 137,424 valuations of a type known as "tasaciones" in Spain, which were all undertaken in the last quarter of 2018.
At the end of 2018, the Community of Madrid and Catalonia registered the highest year-on-year house price increases of 8.1% and 5.8%, respectively.
The reported average price per square meter represents a fall of 23% when compared to the maximum values reached in the first quarter of 2008, the highest point of the real estate sector "boom". However, this percentage rises to 33% when taking into account the variation in the Consumer Price Index (CPI).
From the minimums registered in the third quarter of 2014, the price of housing has recovered by 11.2%. Analysing the data of the fourth quarter of 2018, the price of housing rose 1.8% compared to the previous quarter. By age, homes of less than five years old increased by 2.3% to 1,845.5 euros per square meter, while homes of more than five years increased to 1,611.7 euros per square metre. In the Spanish protected housing sector, the average price per square meter was 1,127.1 euros, which represented a fall of 0.1%.
Fourteen of Spain's seventeen Autonomous Regions showed year-on-year price increases during 2018. Of these Madrid stands out the most: Madrid (8.1%); Catalonia (5.8%); La Rioja (4.8%); Andalusia (4.2%); Canary Islands (4%) and Valencian Community (3.7%). However, four Regions registered year-on-year falls, the most notable being Asturias (-1.4%); Murcia (-1.3%); The Basque Country (-0.5%) and Castilla y León (-0.1%).
Of the municipalities with more than 25,000 inhabitants, the highest values of free market housing were registered in San Sebastián (3,590.9 euros / m2); Ibiza (3,537.4 euros / m2); Barcelona (3,362.8 euros / m2); Sant Cugat del Vallès (3,331.1 euros / m2); Santa Eulalia del Río (3,224.8 euros / m2); Madrid (3,103.8 euros / m2); Pozuelo de Alarcón (3,091.4 euros / m2) and Majadahonda (3,020.6 euros / m2). The lowest pvalues in the municipalities with more than 25,000 inhabitants were registered in Elda (574.8 euros / m2); Jumilla, (593.4 euros / m2); Puertollano (599.1 euros / m2); Villena (603.0 euros / m2); Villarrobledo (606.4 euros / m2) and Caravaca de la Cruz (607.9 euros / m2).
Stan Dickens (FRICS) is a UK qualified Chartered Surveyor who has practiced in Spain and Portugal since 1989.