According to facts and figures shown by the Ministry of Public Works some weeks ago, urban land price in Spain is on the rise. The third term of 2017, has set the average price of urban land at 162€, a figure which goes well beyond the 150€ of 2016. If we look back we realize that the 2017 figure is even higher than in 2015 which was 154€. As for 2014, it was 142€ and in 2013 it was 147€. We have to go all the way back to 2012 in order to find a higher figure than in 2017 during the third term of the year. In 2012, the price per square metre reached 168€. Thus, the annual rate during the third term in 2017 shows that urban land price rose 7,8%, whereas in 2016 the annual rate during the third term had a negative development and a decrease of 2,6%. These figures prove interesting because they confirm that housing in Spain is going through good times even though the growth rate is different in each region. We still have not got the facts and figures regarding the fourth term of 2017, therefore we cannot assess the whole year. However, we can state that during the first three terms of 2017, urban land price rose with regard to 2016. On the other hand, the Appraisal Company Tinsa has carried out some provisional reports that show an average increase of more than 4% in Spanish finished housing. This fact predicts good times for the fourth term in 2017.
MADRID RECORDS THE HIGHEST PRICES
We must highlight another very interesting fact regarding municipalities with more than 50.000 inhabitants whose annual rate per square metre rose more than 5% reaching 287€. It is obvious that throughout 2017 there has been growing interest in the purchase of housing in large cities. Some weeks ago, we wrote about the good times that housing sales in Madrid are going through. This circumstance also takes place in other large Spanish cities such as Barcelona. According to facts and figures shown by the Ministry of Public Works, the highest prices during the third term of 2017 were registered in the Community of Madrid at 485€ per square metre. Next, the province of Barcelona at 447€ per square metre, and after, the Balearics at 375€ per square metre. Real estate developers complain about the fact that a very small amount of urban land is available for building and this has led to the underlying problem in the Community of Madrid. Real estate developers believe that this major problem has greatly influenced the continuous price rise. On the other hand, the cities with the lowest housing prices are first of all Huesca at only 48€ per square metre. Next, Cádiz at 115€ per square metre and in third place, León at 120€ per square metre.
Concerning housing transactions during the third term of 2017, the total number was 4.554. This figure is lower than the one in 2016 which reached 4.656 transactions. If we only take into account the great cities, 968 transactions took place which amount to 5,7% less than in 2016. Unquestionably, lack of urban land has become a serious issue for real estate agents in the great cities. Let us hope that policies which will alleviate this problem can be stimulated as is the wish of real estate developers.