Taylor Scott International News
Residential property prices increased by 4.5% in the third quarter of 2015 compared to the same period in 2014, according to the latest data from the National Statistics Institute. The details from the housing price index means that prices have now increased for six quarters annually in a row following six years of decline and it is the highest quarterly rise since the last quarter of 2007 when growth was 5.7%, just before the global economic downturn. House prices then started falling in the second quarter of 2008 with a decline of 0.3% and continued to fall until the second quarter of 2014. A breakdown of the figures show that the price of new homes fell by 4.3% and other homes were up by 4.5% while quarter on quarter prices overall increased 0.7% which followed a strong rise of 4.1% in the second quarter of the year. In what is a sign of the universal nature of the recovery in the Spanish property market the figures show a rise in prices in almost every region in the country. Asturias and Extremadura recorded the greatest annual rates of increase, up by 2.6% and 2.4%, to 3.5% and 3.3%, respectively, while the greatest annual fall was in the Basque Country and Valencia, down by 0.9% and 0.6% to 1% and 2.1%, respectively. Quarter on quarter nine regions saw prices rise, seven recorded declines and prices remained stable in the Basque Country. The largest quarterly increase was in the Balearic Islands with growth of 3.1% and Asturias up 1.8%, while the biggest fall was in Navarra with a decline of 1.1% and Aragón down 1%. Residential rents are also rising and increased year on year in all regions in November, the first time this has happened for eight years. The data from property porta Fotocasa shows this was led by Catalonia with an annual rise of 10.6%, followed by the Balearic Islands up 7.8%, Madrid up 6.3% and La Rioja up 6%. In Castilla-La Mancha average rents increased by 0.7%, Cantabria was up 1%, the Basque Country up 1.1% and Navarra up 1.3%. Month on month rents increased by 0.5% to €7.02 per square meter per month with 11 regions seeing rises. The Balearic Islands saw a monthly rise of 1.9% and Catalonia up 1.3% while La Rioja, the Canary Islands and Cantabria all saw growth of 0.6%. But average rental prices fell by 1.2% month on month in Galicia, fell by 0.9% in the Basque Country and by 0.8% in Murcia. The data also shows that since the peak of the market in May 2007 when rents were €10.12 per square meter per month rental values have fallen by 30.7% and five regions have seen accumulated declines over 30%. The steepest decline since peak has been in Aragón where rental prices have fallen by 41.6%, followed by Cantabria down 36.1%, Castilla-La Mancha down 35.2%, Valencia down 34.5% and Murcia down 32.3%. The smallest declines from peak are in Castilla… Taylor Scott International
Taylor Scott International, Taylor Scott
