According to data released on Monday by National Statistics Institute (INE), the housing prices increased in 2014 after six years of property crisis in which they have been declining. The annual variation of Housing Price Index (IPV) in the fourth quarter of 2014 raises one and a half and stands at 1.8%, confirming the change in tendency in the sector.

By type of property, the price of second hand houses increased 0.1 percent in 2014 after six years of falling. For new houses, the price increased 0.9 percent in 2014 after five years in negative.mutuo-1-thumb

Between 2008 and 2013, prices had annual declines of varying intensity: 1.5% in 2008, 6.7% in 2009, from 2% in 2010, 7.4% in 2011, 13.7% in 2012 and 10.6% in 2013. Previously, in 2007, when it began to be developed this index, the price of housing experienced a positive rate of 9.8%.

According to data by quarter, the price increased by 1.8% in the last three months of 2014 compared to the same quarter of 2013. This rate is an improvement of 1.5 points compared to the third quarter (+ 0.3%). Thus, there are now three consecutive quarters in which housing prices have positive rates after 6 years of annual declines.

By Autonomous Communities, a relevant section for the price disparity between regions, cities and neighborhoods who has experienced the sector throughout the crisis period, there are three communities who continue with downward prices: Asturias (-1.5%), Extremadura (-0.7%) and Navarra (-6.9%). In the other hand, the prices are increasing in Madrid (2.8%) and Cantabria (2%).

In experts opinion, the data is positive although with some nuances because the increase is minimal but acting as an incentive to the regeneration of the housing market. In any case, it should be noted that 2014 is compared with 2013, witch was “the toughest year for the sector”.

It should also be noted that housing develops differently depending on the product and, above all, location, besides having a direct relationship with the available stock.

David Lorenzo-Spanish Lawyer UK
Spanish Law | Birchall Blackburn

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