In 2014, the difference between the price per square meter of an apartment in Barcelona and Madrid was 450 euros, but last year the gap widened to 520 euros.
The price of housing in Barcelona is the most expensive compared to major Spanish cities, at least in euros per square meter. Especially in the Catalan capital where prices have increased the most. This report -prepared by Tecnocasa and Pompeu Fabra University economics professor- indicates that in Barcelona, the average price per square meter, at the end of the second semester of 2015, will be increased by 8.2% compared to a year earlier.
But it should be noted that in Madrid the price stood at 1,697 euros per square meter, and has increased to 6.3%. For this reason, the difference in price between Barcelona and Madrid has widened. At the end of 2014, the difference between the two cities was 450 euros per square meter (1,599 euros Madrid and 2,049 euros in Barcelona), this gap widened to 520 euros at the end of 2015.
Professor García Montalvo has an explanation for this phenomenon. Barcelona has always been more expensive than Madrid because the town is smaller. In Madrid there are growth zones in the periphery, which are still within the municipal boundaries and bring down the average price.
But in addition, the Catalan capital receives more investors interests than Madrid, says this expert, which creates tensions rising prices. On average, in Spain a quarter of flats are purchased by investors and three-quarters are inhabited by families.
Furthermore, José García Montalvo thinks it is logical that investors want to buy houses now, because they can get yields of around 6%, which can not be achieved with any other active. Therefore, he believes that families, last year, were encouraged to buy flats for economic improvement and opening the credit tap from banks. But this year, they could be dissuaded by the uncertainty that is hanging over the markets. For investors, said García Montalvo, they can be affected by politics, particularly by changes that may affect the regulation of the housing market, for example to have sanctions for empty apartments.
The study analyzes the prices in the main Spanish cities, and where housing is more expensive after Madrid and Barcelona is in Hospitalet de Llobregat, where the square meter is paid 1385 euros and where last year’s prices rose by 4.06%.
The analysis of the data of the State indicates that the price of housing has risen to 5.76% of average percentage, representing the highest increase since 2006. Despite this increase, the decrease accumulated since the maximum prices observed at the end of 2006 stood at 55.29%.
The study Tecnocasa and UPF also indicates a significant increase in the price of rent, for Barcelona it has climbed 6.19% in 2015 compared with 2014. For Madrid, the rent increased by 4.67%.