Average national Spanish house prices rose by four per cent over twelve months to the end of the second quarter, according to the Official House Price Index published by the National Institute of Statistics (INE).
In the Balearics prices rose 7.3% – the highest regional rise in all Spain – driven by a 7.8% rise in new build prices, and a 7.4% rise in resale prices. The chart above illustrates the latest annualised house price changes for selected regions.
New and resale house prices have been rising since the second quarter of last year, and the trend appears to be picking up speed for both new and resale properties, as the next chart shows.
However, this data clashes with the latest house price figures from the General Council of Notaries, showing Spanish house prices down 0.3% in Q2, having fallen every month this year. There are reasons to be sceptical about the Official House Price Index published by the INE.
BOOM TO BUST
Compared to 2007, Spanish house prices are down 33%, according to the Official House Price Index. Resale prices are down 40%, and new build prices down 24%.
By regions, prices are down the most in Catalonia, where house prices now stand at just 58% of their level in 2007, and down the least in Andalusia, where they are now 76% of the 2007 level, down 24%.