Average asking prices (resale) lurched down by 2.7% over 3 months to the end of September, according to index published by Idealista, one of Spain’s leading property portals.
As a result, the average price for an apartment in Spain is now down to 2,309 Euros/m2, so a flat of 100m2 would now cost you 230,900 Euros on average.
The Idealista index is based on asking prices for 160,940 apartments in its database. The index excludes other types of property such as detached homes with gardens (which distort the price/m2 ratio), but gives us a reasonable idea of where asking prices are heading in Spain.
What do the latest figures tell us? That vendors are starting to feel a bit beaten up again, and are giving ground in the search for buyers. That said, you can’t read too much into Spanish asking prices, which are far more detached from reality than in other more transparent markets like the UK.
The Balearics appear to be bucking the trend, perhaps because they still attract affluent house-hunters from around Europe and beyond. Asking prices in The Balearics rose by 3.7% in the period, and by 4.8% in the capital Palma de Mallorca.
Though far from perfect, The Balearics did a better job of urban development than most other Spanish tourist regions during the real estate boom. As a result, The Balearic coastline is still one of the most attractive in Spain, and will be in a stronger position to attract property buyers as a result.
Along with The Balearics, prices rose in only 2 other regions, both in the north of Spain: Cantabria (+0,2%), and Galicia (+0,2%).
Average asking prices fell the most in Murcia, down by 4.6% in just 3 months.
Prices were stable in Barcelona – down just 0.5% to 4,065 Euros/m2. Peak to present, property in Barcelona has fallen 16.8% from the 4,888 €/m2 peak in Q1 2007. Prices are now lower than they were in Q1 2005, more than 5 years ago, when they stood at 4,092 €/m2.
Prices in Madrid are down 1.3% to 3,780 €/m2, roughly where they were in Q3 2004 (3,743 €/m2), and down 12.4% from the Q2 2007 peak of 4,315 €/m2.
Prices in Valencia city are down 1% to 2,312 €/m2, down 19.2% from Q2 2007 peak of 2,861 €/m2.
So The Balearics apart, not much good news for vendors. But for potential buyers waiting for prices to fall even further, the news just gets better and better.