Coastal and Island Property Prices Increase

Property prices increased in March
Property prices increased in March

According to data released by Tinsa today, the average price of finished housing remained stable throughout March showing a slight increase of 0.8% over the same month last year.

The areas of the “Mediterranean Coast” and the “Balearic and Canary Islands” show the most positive month with both areas showing an increase in prices of 4.3% during March.

The cumulative adjustment since the pre-crisis peak remained at -41%.

Only two areas recorded negative adjustment on the annual rate. “Capitals and Big Cities” and smaller towns grouped under “Other Municipalities” both recorded prices slightly below those of March 2015, with annual declines of 0.6% and 1.3%, respectively. The areas grouped under “Metropolitan Areas” recorded a healthy increase of 2.8%, year-on-year.

Quarter 1, 2016

When looking at the evolution of prices over the first quarter of the year, the overall pricing index is 2.2% higher than the end of Q4, 2015. The highest quarterly shift was recorded in the “Balearic and Canary Islands” where prices increased 5.4% over the previous quarter. Following closely behind was “Other Municipalities” with a 3.4% increase, and the “Mediterranean Coast” where prices of property for sale increased 3.1%.

Despite recent price increases there is still a huge gap between today’s prices and those of 2007. The average adjustment across the country is currently -41%. In the “Mediterranean Coast”, despite the recent onset of a recovery, is still showing the greatest difference over prices of eight years ago. Currently prices on the south coast are 46.5% lower than before the crisis. Other areas where the price difference is over 40% include “Capitals and Large Cities” and “Metropolitan Areas”, where prices are currently 45.1% and 43.8% below pre-crisis levels, respectively.

The lowest cumulative adjustment since the crisis is recorded in the “Balearic and Canary Islands” where prices are currently 29.1% down, while “Other Municipalities” are still 36.1% below those of 2007.

The Tinsa IMIE index is calculated on the annual change in the value of a m² of a property.

 

Average House Prices Increased in Q1

Property prices saw encouraging growth in Q1
Property prices saw encouraging growth in Q1

According to data released by Tinsa, average house prices in Spain increased by 1.4% during the first quarter of 2016, when compared to the same period in the previous year. This is the second consecutive quarter to finish with an increase, and comes despite the fall in prices for resale property.

As far as regions go, the two clear winner were Catalonia and Madrid who saw year-on-year increases of 8.2% and 7% respectively.

For the first time since the crisis of 2007, more autonomous regions recorded an increase in prices than a fall. Following the aforementioned “winners” other regions that saw significant price appreciation were the Balearic Islands with a 3.8% increase, Castilla La Mancha which saw a 3.5% increase and also the Canary Islands where property prices increased 2.4%.

Only two regions recorded a price fall – Aragon and Galicia – where prices fell by 3.5% and 3.1% respectively. When looking at how prices have or have not recovered since the crisis, property in Aragon is now 51.3% lower than in the peak of 2007. Castilla La Mancha has seen prices fall 51.2%. The smallest shift in prices is recorded in the Balearic Islands where prices are currently 28.9% lower than pre-crisis levels.

Provinces

By province, the largest quarterly increase was recorded in Barcelona where prices increased 8.9%, followed by Albacete (+7.6%), Madrid (+7%) and Lleida with a 6.5% increase. A further 12 provinces managed increases above the national average of 1.4%. The recovery seems to be continuing and also spreading out across the country.

The provinces that registered the largest quarterly fall were Álava, Teruel and Jaen, with decreases of 7.8%, 6.7% and 6.3%, respectively. Cordoba, Pontevedra, Palencia, Burgos and Zaragoza also saw prices depreciate by more than 3%.

When comparing the provinces to pre-crisis levels, the largest adjustment is in Toledo which has seen depreciation of 55.1% since 2007. Zaragoza and Guadalajara also saw falls of over 50% registering cumulative declines of 54.3% and 54.1%.

Selling

When selling a property in Spain, the average time required from putting the property on the market to closing a sale is currently 10.5 months. However, in Cantabria the average time required is 19 months, while sellers in Avila require an average of 17.1 months to close a sale. At the other end of the table Ceuta, Melilla, and the provinces of Las Palmas and Madrid have average selling times below seven months.

As previously mentioned, Barcelona and Madrid have seen increases in value and the demand for property in those areas is also reflected in the time required to sell. In both cities the average time required to sell is less than six months (5.9 in Barcelona and 5.6 in Madrid). In the city of Valencia, the trend is reversed with the average time to sell being over a year, standing at 13.2 months.

Personal Situation

As the rate of decline in property values has been more pronounced than the reductions in wages and the cost of living, the requirement to purchase a property (to afford mortgage payments) during 2015 was 22% of household income, compared to the 33% that was required in 2007. Only Malaga exceeded this average. Buyers in the Andalusian province will require 33% of gross household income to purchase a property.

In both Zaragoza and Valencia, the requirements are well below the national average with 19% and 17% respectively.

The requirement in Barcelona is 23.3%, while Madrileños require 21.5% and those in Seville will need 20.5% of household income. The area with the highest requirements is the district of Sarria-Sant Gervasi (Barcelona), where buyers will need 39.9% of household income to pay a mortgage.

When looking at the requirements in terms of yearly salaries, the current requirement is 6 years’ salary, compared to 8.1 years during the boom years. In Malaga, however, eight years’ salary would be required, while buyers hoping to purchase on the Balearic Islands will have to fork out an average of 14 years’ salary. This is mainly due to the busy residential market on the islands aimed primarily at foreign buyers.

You can see the full report here (in Spanish).

 

Property Prices Up 2.7% in February

In February the average price of finished housing (new and used) in Spain, showed an increase of 2.7% to 1,346 points.

Data released by Tinsa shows the Spanish property market remains positive. Furthermore the increase for this period show a great year-on-year increase following the steep decline in the same period last year which took the index back to May 2003 levels, the lowest since the global financial meltdown.

The “Mediterranean Coast” and “Capitals and Major Cities” showed the biggest gains showing interannual variations of 6.1% and 4.6% respectively.

Despite the country as a whole showing a cumulative increase of 2.7% the country’s smaller towns (“other municipalities”) remain low, lower than the same period last year.

From the crisis of 2007, the average price adjustment now stands at 41%.

Not forgetting the decline of 2015 the areas included in the Mediterranean Coast showed the largest annual increase despite showing a slight decline of -0.1% during January and February, 2016.

The Balearic and Canary Islands registered an increase of 2.5% in February, when compared to the same period in the previous year, while “Metropolitan Areas” show an average increase of 1.5% over the last 12 months.

Despite the positive news and outlook prices are still a way off pre-crisis levels. The steepest declines are in the Mediterranean Coast (-48.1%), Metropolitan Areas (-44.7%) and Capitals and Large Cities (-44%). The cumulative adjustment is now below average in The Balearic and Canary Islands having recorded a fall of 30.7% since 2007, and also in Other Municipalities where prices have fallen 36.5%

Spain - House Prices Increase 2.7% Feb 2016

The Tinsa IMIE is calculated from housing appraisals and each month collects the change in the cost of a m2 of a building and compares it to 2001. The absolute numbers (points) correspond to the value of the index and are not relate to the price per square meter.

 

Tinsa Imie Index – September 2012

TinsaThe cumulative decline increased by 5 tenths in September to 32.9%. Capitals and Major Cities recorded the highest fall compared to other areas.

The IMIE General Index recorded a year-on-year decline of 11.6% in September, similar to the previous month, pushing the index down to 1532 points. The cumulative decline in house prices since the top of the market in December 2007 was exactly 32.9%.

In terms of the performance of the different areas, “Capitals and Major Cities” recorded the steepest year-on-year decline with 13.5%.

The remaining areas all fell below the average with very similar year-on-year figures. The largest price falls were in “Other Municipalities” with 10.9%, followed by “Mediterranean Coast” with 10.8% year-on-year, “Metropolitan Areas”, with 10.4%, the same as the previous month, and lastly the “Balearic and Canary Islands” with a figure of 10%.

In terms of the cumulative declines by area since the top of the market, the fall in prices in the “Mediterranean Coast” reached 39.2% in September; followed by 36% for “Capitals and Major Cities”, 33.2% for “Metropolitan Areas”, 28.6% for the “Balearic and Canary Islands” and 28.5% for “Other Municipalities”, which comprises all those not included in other categories.

House prices continued to fall in August

Property prices continue to fall
Property prices continue to fall

According to new figures released by Tinsa, house prices continued to drop in August with an 11.6% decrease, compared to the same period last year.

The press release from Tinsa is below.

Prices along the Mediterranean Coast have now fallen by an average of 40% from their highest levels.

The Major Cities segment is experiencing greater downward pressure on prices.

The General IMIE index recorded a year-on-year decline of 11.6%, slightly higher than the fall recorded in July, ending the month at 1545 points. The cumulative decline in house prices since the market peak in December 2007 is 32.4%.

The breakdown by segment shows that the “Mediterranean Coast” recorded the highest year-onyear fall in August, of 14.7%, followed by “Capitals and Major Cities”, which saw a 13.4% decline in value compared with the same month the year before.

The fall experienced in the “Balearic and Canary Islands” was slightly below the average, at 11.5%. An even smaller decline was recorded by “Metropolitan Areas”, where the year-on-year fall stood at 10.4%, and lastly “Other Municipalities”, with a fall of 8.8%, even lower than the figure recorded in July.

With regards to the cumulative falls by segment since the top of the market, the “Mediterranean Coast” is once again the biggest faller, with a decline of 39.5%; followed by “Capitals and Major Cities” with 35.6%, “Metropolitan Areas” with 31.4%, the “Balearic and Canary Islands” with 30.2% and “Other Municipalities”, which refers to those not included in other categories, with 27.4%.

You can download the press release here: IMIE House Price Index – August 2012

Spanish property prices decline 11.2%

Property prices continue to fall
Property prices continue to fall

Figures released today by Tinsa show property prices in Spain are continuing to fall registering a decline of 11.2% since July 2011.

The IMIE General index registered a year-on-year decline of 11.2% in July, pushing the index down to 1577 points. The cumulative decline in house prices since the market peaked in December 2007 is 31%.

Comparing the regions, the “Balearic Islands and Canary Islands” showed the sharpest year-on-year decline in July, at 14%, closely followed by “Capitals and Large Cities”, which fell by 11.8% compared to the same month the previous year, and “Metropolitan Areas”, which again stood at 11.6%. The decline was greater than the market average in all three areas.

On this occasion, both the “Mediterranean Coast”, with a year-on-year decline of 11%, and lastly, “Other Municipalities” with a fall of 9.1%, were below average.

In terms of the cumulative decline in house prices by region since peak prices, there was a 37.2% fall in July for the “Mediterranean Coast”; followed by 33.5% for “Capitals and Major Cities”, 32.1% for “Metropolitan Areas”, 29.2% for the “Balearic and Canary Islands” and 25.9% for “Other Municipalities”, which comprises the remainder.

You can download the press release here: Tinsa IMIE Index – July 2012

House prices continue fall in Q2

The price fall continues unabated
The price fall continues unabated

House prices in Spain fell during the second quarter by 11.5% compared to the same period in the previous year, up from 9.2% in the previous quarter.

The report, from Tinsa, shows that the majority of the autonomous regions followed the downward trend with La Rioja recording the greatest fall of 22.6%, bringing the prices back to 2003 levels. Catalonia followed with an 18% decline, followed by Aragon (-16.3%), Valencia (-14%), Castilla-La Mancha (-13.8%) and Madrid (-13.8%).

Staying within a few points of the national average were Castilla y León (-11.8%), Andalusia (-11.6%), Navarra (-11.5%), Murcia (-10.8%), the Canary Islands (-10.6%) and the Balearic Islands (-10.5%). The areas least affected by the decline in prices include Extremadura (-10.1%), Galicia (-6.2%), Asturias (-5.2%), Ceuta (-4%), Cantabria (-3.6%) and Melilla (-3.3%).

On a provincial level a more pronounced decline was recorded with above average falls in Tarragona (19%), Toledo (-18.7%), Zaragoza (-18.6%), Almeria (18.1%) and Segovia (18%).

At the other end of the scale a few regions registered smaller declines, or none at all, including Basin (-0.1%) and Orense (0%). Lugo is the only province that, provisionally, shows a slight rise of 2.1%.

Looking at the cumulative decline in prices since the crisis first hit in 2007 the north-east corner of the country stands out with the largest falls recorded (in addition to La Rioja) in Catalonia (-39.3%), Aragon (-37.8%) and Valencia (-36.2%).

Included in this group, although located in the central zone, and with prices influenced by Madrid, is Castilla-La Mancha where the cumulative decline from 2007 now stands at 38.9%.

The cumulative decline now stands at over 40% in a number of provinces including Toledo (-43.1%), Guadalajara (-41.1%), Zaragoza (-40.4%), Tarragona (-40.2%) and Barcelona (-40%). Also on the verge of joining the over-40% group are Almeria (-39.2%), Malaga (-39.1%), Girona (-37.2%) and Valencia (-37.2%).

Conversely, the provinces that showed lower cumulative declines were those with lower population density and a slow second-home market, mainly in the north-west quadrant. Those provinces include Soria (-13.8%), Zamora (-10.2%), Orense (-6.5%) and Lugo (-5.7%).

You can download Tinsa’s complete report here (ES): Tinsa Market Report Q2 2012

June Imie Index 2012 – Tinsa

Sharp decline in prices in major cities
Sharp decline in prices in major cities

Tinsa have released their house price index report for June 2012.

The year-on-year decline in the IMIE General index slowed slightly in June to 10.8% after the index reached 1589 points. The cumulative decline in house prices since the top of the market in December 2007 reached 30.4%.

By region, “Capitals and Major Cities” recorded the sharpest year-on-year decline in June of 13.5%, closely followed by the municipalities of the “Mediterranean Coast”, which fell by 13.3% compared to the same month in 2011, and “Metropolitan Areas”, which fell by 11.6%. The decline was greater than the market average in all three areas.

Behind these were once again “Other Municipalities”, which fell year-on-year by 7.3%, and the “Balearic and Canary Islands”, which were ranked last with a decline of 6.8%.

In terms of the cumulative decline in house prices since the top of the market by region, the “Mediterranean Coast” recorded a fall in June of 38.3%; followed by “Capitals and Major Cities” with 33.8%, “Metropolitan Areas” with 31.9%, the “Balearic and Canary Islands” with 25.4% and “Other Municipalities”, which refers to those not included in the other categories, with 24.5%.

You can download the press release here: June Imie Press Release and the index from here: June Imie Index 2012

About the IMIE – Spanish Property Market Index
The IMIE Index, a pioneering initiative launched by Tinsa in 2008, is an index that reflects the valueof residential property in Spain. It is governed by market criteria in terms of its geographical segmentation. Based on these guidelines, Tinsa has subdivided Spain into five major categories that represent the segments of the residential property market: Capitals and Major Cities with a population of 50,000 or more, Metropolitan Areas, the Mediterranean Coast, the Balearic and Canary Islands and Other Municipalities.

The IMIE Index records the variation in the m2 value of a property, calculated using the information from more than 200,000 residential valuations carried out by Tinsa every year, based on the methodology similar to that used for calculating the CPI and other international monthly price indices.

About Tinsa
Tinsa is a leading multinational for property valuation, analysis and advice. Founded in 1985, the company has 32 regional offices in Spain as well as permanent offices in France, Portugal, Argentina, Chile, Mexico, Peru and Colombia, although it operates in more than 25 countries. Since November 2010 Tinsa has been owned by Advent International.

Tinsa’s range of services includes real estate analysis and valuation, consultancy, and valuation of other types of tangible and intangible assets, among others. For more information please visit http://www.tinsa.es.

House prices down in May

Tinsa - Imie Index May 2012

TINSA have released their IMIE Index figures for May showing a decline of 11.1% year-on-year.

The year-on-year variation in house prices in May recorded a modest slowdown in the trend of recent months”

The General IMIE Index fell during May in year-on-year terms, with a decline of 11.1% and an Index level of 1595 points, after falling below the 1600 barrier. The cumulative decline in house prices from the peak of the market in December 2007 reached a low-point increasing by four tenths to 30.2%.

In terms of the different segments, the municipalities of the “Mediterranean Coast” once again recorded the sharpest year-on-year decline during May with a fall of 14.1%, closely followed by “Capitals and Major Cities” which fell by 13.3% and “Metropolitan Areas” by 11.8% compared to the same month the previous year. The decline was greater than the market average in all three areas.

Once again “Other Municipalities” were below the average with a year-on-year decline of 8.4%, followed by the “Balearic and Canary Islands” in last place with a fall of 6%.

In relation to the overall decline from the top of the market, the “Mediterranean Coast” recorded a fall of 37.9% to May; followed by “Capitals and Major Cities” with 32.9%, “Metropolitan Areas” with 31.2%, “Other Municipalities” with 25.9% and lastly “Balearic and Canary Islands” with 24.1%.

Read the full IMIE May Index 2012 at Tinsa.

House prices continue to fall in April

TINSA have released their IMIE index for April showing a decline in house prices of 12.5%. The cumulative decline since the peak in December 2007 increased to 29.8%.

Tinsa IMIE April 2012
Tinsa IMIE April 2011 v April 2012

In terms of the different segments, the municipalities of the Mediterranean Coast once again recorded the sharpest year-on-year decline during April with a fall of 14.3%, closely followed by Capitals and Major Cities which fell by 13.7% compared to the same month last year. In both cases the decline was higher than the market average.

Below the market average were the Balearic and Canary Islands which fell by 12.3% yearon-year, followed by Metropolitan Areas with 12%; while the lowest declines were recorded by Other Municipalities, defined as those not included in the other segments, which recorded a fall of 10.6%.

In terms of cumulative declines from the top of the market by segment, the Mediterranean Coast was down by a total of 37% in April; followed by Capitals and Major Cities with 32.8%, Metropolitan Areas with 30.7%, Balearic and Canary Islands with 26.9% and lastly Other Municipalities with 24.2%.

About the IMIE – Spanish Property Market Index

The IMIE Index, a pioneering initiative launched by Tinsa in 2008, consists of an index that reflects the value of residential property in Spain. It is governed by market criteria in terms of its geographical segmentation. Based on these guidelines, Tinsa has subdivided Spain into five major categories that represent the segments of the residential property market: Capitals and Major Cities with a population of 50,000 or more, Metropolitan Areas, the Mediterranean Coast, the Balearic and Canary Islands and Other Municipalities.

The IMIE Index records the variation in the m2 value of a property, calculated using the information from more than 200,000 residential valuations carried out by Tinsa every year, based on the methodology similar to that used for calculating the CPI and other international monthly price indices.

About Tinsa

Tinsa is a leading multinational for property valuation, analysis and advice. Founded in 1985, the company has 32 regional offices in Spain as well as permanent offices in France, Portugal, Argentina, Chile, Peru and Mexico, although it operates in more than 25 countries. Since November 2010 Tinsa has been owned by Advent International.

Tinsa’s range of services includes real estate analysis and valuation, consultancy, and valuation of other types of tangible and intangible assets, among others. For more information please visit www.tinsa.es.