Housing price drops 4.5% in Catalonia in the last three months
During the first three months of 2011, housing prices dropped by 4.5% compared to the same period in 2010. The end of fiscal advantages for property purchase is the main reason behind this drop. The average square metre price in Catalonia is now set at 2,145.2 euros. These prices have not been seen since early 2006 and represent a 14% drop compared with the historic maximum in 2008.
Madrid (ACN).- Housing prices are decreasing in Catalonia for the third consecutive quarter, due to the end of fiscal advantages to purchase a house or a flat. It appears that the real estate market has not levelled out yet and, despite a moderation in the price decrease in 2010, in 2011 prices continued to drop. Overall, they accumulate a drop of 13.9% compared with their price peak, in early 2008. During the first three months of this year, open market housing prices dropped by 4.5% compared with the same period in 2010, according to data from the Spanish Ministry of Public Works. When comparing the final quarter of 2010, prices “only” dropped by 3.0%. The average price per square metre in a house or a flat in Catalonia was set at 2,145.2 euros at the end of March 2010. This is the lowest figure in the last five years, and is at levels seen in early 2006. When we look at Catalonia’s four provinces, Barcelona is where prices dropped the least, with a 4.2% decrease compared with the same period in 2010. In Lleida prices fell by 7.3%, in Girona by 5.4% and in Tarragona prices experienced a decrease of 4.5%. In Barcelona city, the average square metre price was set, at the end of March 2011, at 3,103.5 euros. Looking at Spain as a whole, housing prices dropped by 4.7% in the first three months of 2011, compared with the same period in 2010. The average square metre price is 1,777.6 euros, a price level from early 2005. Compared with the last quarter of 2010, the price drop was 2.6%. Housing prices decreased in Spain for another three month term, a trend repeated continuously for the last 12 terms, since early 2008, when the real estate bubble burst.
However, in Catalonia, open market housing prices are experiencing a more moderate decrease. They have dropped during this last quarter, the third in a row (unlike the 12 for Spain as a whole). However, the price decrease stopped temporarily in 2010 due to the fiscal deductions housing purchasers could apply for.
Social housing prices increase by 0.9% compared to the same period in 2010
Social housing prices in Catalonia experienced a different trend than open market housing. During the first three months of 2011, social housing prices increased by 0.9%, compared to the same period in 2010. The increase is greater when looking at the last three months in 2010: they increased by 2.4%. These fluctuations set the social housing average square metre price at 1,280.3 euros.
Looking at different territories in Catalonia, Barcelona is also the most expensive province when it comes to social housing. The average square metre price was set at 1,329 euros at the end of March 2011. It is followed by Lleida, with 1,179.4 euros, which is the province with the biggest price increase compared to the same period in 2010. In Lleida, social housing prices increased by 3.8% over the last 12 months. The cheapest areas in Catalonia, when it comes to social housing, are Girona and Tarragona, with 1,174.7 euros and 1,196.0 euros respectively.
Open market housing in Catalonia has very different prices depending on the area
Open market housing prices in Barcelona Province are the most expensive in Catalonia. Despite the 4.2% drop in the last number of months, the average square metre price in Barcelona at the end of March 2011 was set at 2,414.2 euros. It greatly contrasts with the province of Lleida, where the average square metre price was set at 1,250.4 euros, and a drop of 5.7% compared to 12 months ago. In Girona it was € 1,916.1 (a 5.4% drop) and in Tarragona € 1,681 (1.4% drop).
In Barcelona Province, among the cities and towns with more than 25,000 inhabitants, Sant Cugat del Vallès (3,282.6 euros) and Barcelona city (3.103.5 euros) are the most expensive, while Vic (€ 1,648.1) and Igualada (€ 1,604.9) are the cheapest. However, in Barcelona and in all the other provinces, there are some towns or villages with less than 25,000 inhabitants with higher average prices.
In Girona Province the most expensive city is Girona, with an average price of 2,082 euros, followed by the touristy Lloret de Mar and Blanes, with 1,974 euros and 1,933 euros respectively. In Tarragona Province, the coastal tourist centre of Cambrils is the most expensive town (with more than 25,000 inhabitants), with an average square metre price of 2,029 euros. Tarragona city follows with 1,768.9 euros. Finally in Lleida Province, Lleida is the city with more than 25,000 inhabitants with the highest housing average square metre price of 1,419.8 euros, and making it the cheapest provincial capital in Catalonia.