The prices of real estate in Murcia have decreased by 2,9% while Alicante experienced a rise by 5,9%
Murcia is one of the three autonomous communities where property prices have slightly dropped not only in the third quarter of 2018 (-0,1%) but thoughout the whole calendar year (-2,9%). Housing costs in average 1026€/m2 which makes Murcia the third cheapest community and the ninth cheapest province in the country.
On the other hand, the prices in Alicante have risen by 2,8% in the last three months which places the province just under the national average (+2,9%). Within the Valencian Community, Alicante is the most expensive at 1368€/m2, wich is also 342€ higher than in its neighbouring province, Murcia.
According to the latest analysis of Idealista, Spain’s leading real estate platform, there has been an increase in property prices by 2,9 % in the third quarter of 2018. Therefore, one square meter of housing is currently worth 1.712 € which is 7,7% more than it was last years.
Fernando Encinar, Chief of Studies at Idealista, says that the constant increase in prices is due to the current socioeconomic situation and doubts that is could be caused by a real estate bubble. Even though the numbers keep rising, they have not yet reached the prices of 2007.
The ongoing rise in real estate prices has also generated an increase in the number of mortgage applications. However, the credit terms and the total volume of business have not yet reached one quarter of the figures recorded during the peak of the real estate bubble.
Broken down to communities and provinces
Spain’s two largest markets, Barcelona and Madrid, present a surprising difference in rates. While the capital of Catalonia has experienced a decrease in prices during the third quarter and only a 1,2% annual increase, the prices in the capital have risen by 21,3% since the beginning of the year.
Despite this slight drop in prices, Barcelona continues being the most expensive city in Spain in term of housing. One square meter is valued at 4.388€, around 500€ more that in Madrid and almost five times the price of real estate in the most economical city, Ávila.
Only 3 of the 17 autonomous communities, Navarra (-2.2%), Galicia (-0.7%) and Murcia (-0.1%), have registered a decrease in prices compared to spring 2018. On the other hand, Canarias and Bleares are on the top of the list with a increase by 4.6% and 3.9% respectively.
In terms of provinces, the highest rise is in Las Palmas (6,3%) and Granada (4%). Despite the increase, Madrid and Barcelona still take the lead with a pricetag of almost 3000€/m2, followed by Guipúzcoa and Baleares.