Two speed market: Prices rise in cities, fall in rural areas

New research by the Spanish property portal idealista provides fresh evidence of a two-speed housing market in Spain.

Using asking prices in its database of listings, has produced a chart (below) showing the average price in provincial capitals (dark green) compared to the national average (light green).

The chart shows that the two markets followed more or less the same trajectory down after the crash, and both started recovering in 2013. But since the second quarter of 2015 they have been going in different directions, with capital city prices rising (1.7% yoy in November) whilst the national average figures heads down (-4.3% in the same period).

Fernando Encinar, head of research at Idealista explains: “The study makes clear that markets that are attract the most interest and can count on solvent demand are already rising in price, whilst other areas, mostly rural, can’t manage to manage to raise interest from buyers, and are being forced to continue dropping prices to close sales.”

Rural Spanish property
Rural property continues to fall in price.

SPI Member Comments

One thought on “Two speed market: Prices rise in cities, fall in rural areas

  • can anyone advise me on spanish regulations for a top floor attic space . We want to purchase a villa Costa Blanca. But the top floor has a small spiral staircase so we would want to alter this. A builder gave us a verbal quote and said it could be done. I asked the person who is helping us look for property and she said it would be fine, I am wondering if the top floor is legal the stairs lead into a turet and then a large room with a sloping ceiling it is descriptby the estate agents as a painting room and storage area we would need this to be a bedroom and to put a decent stairway up there. I asked the lady to ask the current owner if the house was like this when she brought it but to no avail. She says she can stipulate that in the contract that if we can not make the changes we would not purchase. And that we can not see plans untill we do this and our lawyer will get the plans. Everything appears to be on a verbal say so and you have to sign a offer contract before you get any information. Can anyone advise us before we make our decision we like the villa and location but the top floor is causing us a headache.

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