The price of new housing rises 4.5% in 2019, and will slow your progress in 2020

The new housing is encouraged in 2019 by 4.5% on average in the province capitals of spain and prices will continue slowing down in 2020. According to statistic

The price of new housing rises 4.5% in 2019, and will slow your progress in 2020

The new housing is encouraged in 2019 by 4.5% on average in the province capitals of spain and prices will continue slowing down in 2020. According to statistics publicized this Wednesday by the Society of Appraisal, the average price per square metre in the provincial capitals stood at 2.453 euros. Barcelona, with 4.433 euros per square meter and year on year growth of 6.1%, and Madrid (3.627 euros per square meter and growth of 6.6%) are the most expensive cities and have led the growth of this segment of the real estate market.

Outside the major cities, the situation is very different. In the rest of the 400 municipalities which scans the adjusting the average price is 1.682 euros per square meter. And the price rise in the last 12 months is also lower: 1.8%.

By autonomous community, Catalonia (3.934 euros per square metre), Madrid (3.627 euros per square meter) and Basque Country (2.734 euros per square meter) are the three with the new housing more expensive. At the opposite extreme are Extremadura (1.198 euros per square metre), Murcia (€1,260 per square meter) and Castilla - La Mancha (1.434 euros per square meter).

The rise in the prices above which rise wages causes the rate of effort a property Valuation Society measured from the average gross wage and the average price of flats has been made worse in 2019. According to their calculations, an average of Spanish you need 7.4 years of gross pay (considering the fact that you have all that money to target entirely to the payment of the housing) for a home purchase. It is about a month more than what was needed by the end of 2018.

The different personal income and prices of the real estate market that are registered by areas also generate large difference in this indicator. So, in the Balearic islands stood at 16.4 years, while in La Rioja and Murcia is 4.9 years. The island community is also the one that comes out worse stop in the index of accessibility, which measures the borrowing capacity of the population to acquire a mortgage with an interest rate corresponding to mrti of 1,80% and an amortization period of 30 years. Counting to 100 is the reference from which the debt is sufficient (that is to say, you can access a mortgage to buy a house), the Balearic islands remains at 47 points. Two other communities, Catalonia (89) and Madrid (92) are below the barrier of 100 points, all the other exceed.

Despite the difficulties, the statistics collected, in line with other recently published, a milestone in the real estate market throughout 2019. In front of the acceleration experienced in recent years, prices have begun to falter and, according to the forecasts of the Society of Appraisal, they will do so even more in 2020, although they will not fall. The estimation of the experts of the adjusting is that during the next 12 months, the housing is encourages between 3% and 3.5%.

Updated Date: 01 January 2020, 17:00

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