Land prices in Spain fell by 7.5% in the third quarter compared to the same period last year, according to the latest figures published by the Ministry of Housing. On a quarterly basis prices fell 4% to 238 Euros/m2, having risen by 3.7% in the second quarter.

Prices fell the most in municipalities with 10,000 to 50,000 residents, down by 12% to 264 Euros/m2. This would be the case in the typical costal municipality where many foreigners have bought their holiday or retirement homes.

Rural land goes up

Land prices actually rose in the most sparsely populated municipalities, don’t ask why. Land in municipalities with 1,000 to 5,000 inhabitants rose by 2.8% to 121 Euros/m2, and by 5% to 82 Euros /m2 with less than 1,000 inhabitants. It’s hard to see why land prices in rural Spain are rising when, if anything, the countryside is still depopulating.

In total there were 5,000 transactions in the quarter, 15% less than the previous quarter.