Legal and Finance Finance Spain, Home Prices Increased by 1.3% at the end of 2014
Spain, Home Prices Increased by 1.3% at the end of 2014
As per Real Estate Trends report, the average price of houses in Spain rose by 1.3% in the last quarter of 2014. This brings the price to 1,326 euros per square metre.
The latest data shows that the tendency is towards stabilisation, and no quick increases are expected. The demand for second hand homes is more as compared to new homes.
Prices have been declining since 2007. The latest increase is the 2nd consecutive increase following the increase of 4.1% in the 3rd quarter of 2014. In the 3rd quarter of 2007, the cost per square metre was highest at 2,401 euros.
The year 2014 might be the turning point. In spite of the present low rate of construction, the supply of new homes will be significant. Demand of homes will depend on flow of funding, rental market, tourism and employment.
In Murcia, prices in the 4th quarter of 2014 remained stable. The areas which registered price rises in the 4th quarter of 2014 were Valencia (+0.3%), Madrid (+1.3%), Navarra (+1.6%) and the Balearic Islands (+3%). The areas which registered price declines in the 4th quarter of 2014 were Cantabria (-6.8%), La Rioja (-6.9%) and the Basque Country (-7.9%).