New house prices in Spain up again

THE price of new housing across Spain has jumped up for the second consecutive year, rising by 3.3 per cent in 2016.

That leaves an average price per square metre in newly built properties of €2,120.

When the price of new builds rose in 2015 it marked the first increase since the financial crisis hit home in 2007. Last year’s figures therefore represent incredibly positive news for the sector. Even better is the fact that prices have risen across the board, in all regional capitals from Malaga to Madrid.

That’s a marked departure from previous years which have seen increases in cosmopolitan cities offset by regression in provincial towns and the interior. The two-tier system still persists, however, with Madrid and Barcelona registering far higher growth than other cities.

In the Catalan capital new builds now average a price of €3,528 per square metre, compared to the cheaper Badajoz where they command just €1,140. Regardless of the regional discrepancies what really counts is the continued stabilisation of the sector. Price rises for new builds help bolster the already strong construction sector and are occurring alongside enhanced access to credit, better mortgage rates, and more property transactions.