The leading valuation company Tinsa has just released figures for the third quarter based on their property valuations. According to the Local Markets Tinsa IMIE index in the third quarter, the average price in Barcelona is 7.4% higher than in the third quarter of 2014, while the city of Madrid is maintained with an increase of two tenths (+ 0.2%) year on year.In Ciutat Vella district in Barcelona property prices are up 13% in one year, 6% in the Eixample, 12% in Sants-Montjuic.
Instead of using only the price evolution this report looks at other parameters: liquidity of a property for sale, most sold property type, the number of years of salary to buy a property, the affordability ratio, loan-to-value to finance, financial effort for a purchaser to buy a property.
In Barcelona, it takes on average 6,5 months to sell a home. The average price of a Barcelona property sold is in between 100K to 150K euros (24% of transactions). In Spain a buyer needs 5.8 years of the family wage to afford to buy a property.
The affordability ratio is the percentage of a Spanish household income spent on the first year mortgage repayment: it is 24% in Barcelona meaning that the household will use 24% of their income to pay the mortgage, it used to be at 33% at the peak of the property market.
Barcelona stands out as the capital with the highest average priceper square meter in Spain (€ 2,427 / m2).
The Spanish market shows multiple evolutions with ten provinces in the third quarter having prices higher than a year ago, but there are still 11 provinces with annual declines of over 5%, led by Cordoba (- 8.2%), and Almeria (-8%).
In Barcelona, Promoter activity also shows signs of recovery. The number of building permits by the Ministry of Development in the first quarter of 2015 (latest available data) quadrupled from a year earlier to 344 permissions. The purchases of previously owned homes in Barcelona in the second quarter registered an increase of 15% to 3,308 transactions.