Spanish land prices fall 4.8pc in a year

The average cost of land in Spain fell 4.8% over 12 months to the end of March, and 3.7% compared to the last quarter of 2008, all according to figures from the Ministry of Housing. Land now costs an average of 239 Euros/m2.

Like the Ministry’s figures for house prices, these figures don’t make much sense. Land was the object of intense speculation during Spain’s now defunct property boom, and developers are now dumpling land at whatever price they can get to raise money to pay off debts. It’s hard to believe that land prices are falling by only 4.8% annually.

For what they are worth, the Ministry’s figures say that, in municipalities of more than 50,000 people, land prices are down by only 0.5% in a year, to 650 Euros/m2. In districts of between 10,000 and 50,000 people, prices are down 9.1% to 275 Euros/m2.

Prices per m2 of land are highest in Barcelona (977 €/m2), followed by Vitoria – Basque Country (948€/m2), Madrid (927€/m2), and Valencia (924 €/m2). Cheapest of all is Jaén, in Andalucia, where a m2 of land costs 298 Euros.

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About Mark Stücklin

Mark Stücklin is a Barcelona-based property market analyst and consultant, and author of the 'Spanish Property Doctor' column in the Sunday Times (2005 - 2008). He can be reached by email on ms@spanishpropertyinsight.com.