The price of the brick continues to rise and already adds eight quarters of increases. From January to March, the average value of the square meter of free housing reached 1,525.8 euros, 2.2% more than in the first quarter of 2016. The increase compared to the last quarter of 2016 was 0.9 Quarterly, according to the latest Statistics of appraised value of housing, published by the Ministry of Public Works.
In principle, the cruising speed will be maintained until 2019.
The big cities and the coast show the best behavior, due to the increase of the demand of investors and individuals. Barcelona recorded the largest increase, of 6.6%, placing the price of the square meter at 2,114.9 euros.
The increase in sales, coupled with the scarce construction of new housing and the higher density and concentration of the population - higher than in Madrid - raise the price of land in the city.
In second place, Guadalajara, which fired a 5.5% price of the square meter, to 1,044.5 euros, compared to the same period of 2016. This readjustment is due to the fact that the dormitory city, located in the periphery Of Madrid - about 60 kilometers away - is beginning to welcome people who are fleeing the price hikes in central areas of the capital
The increase in demand in large cities is led by households and investors, while on the coast they are usually due to foreign tourists, who are looking for a second home.
In the case of Madrid, the increase is due to the increase in demand, coupled with the scarce housing construction, partly due to the blocking of real estate operations of the City Council. In the outlying areas of Madrid and Barcelona the sale of housing has increased by up to 30% in some areas.
In 2016, the price of housing increased by 4.7%. This rise is positively affecting the delinquency levels of residential mortgages in banks' portfolios. Lowering the ratio between the amount of the mortgage and the value of the property reduces the risk of default and increases the recoveries from the properties that back the mortgages.
The number of home sales in Spain reached 457,000 units in 2016, an increase of 14% year-on-year, but still remains below half the sales in 2007, before the crisis. The majority of sales correspond to second-hand homes, whose sales have reached pre-crisis levels.