Price of land goes down by 7.8% to 258.8 euros per square metre
The price of urban land which makes up between 40 to 60% of the final cost of a property has gone down for the fourth month in a row due to the crisis in the housing sector. In the current market sellers are finding it very difficult to sell which has led to prices dropping. Between April and June this year the price of urban land per square metre fell by 7.8% leaving it 258.8 euros according to information provided by the Ministry for Housing.
The price of land per square metre also fell by a similar amount (7.7%) during the first quarter of 2008. Therefore according to the government the price of land per square metre at the end of the second quarter of 2008 is almost the same as it was at the end of 2004 when it cost 247.3 euros.
The fall in the price of land is more pronounced in places where there are more than 50,000 inhabitants (8.8%) although land in these places is still the most expensive costing an average of 627.
8 euros. The highest prices based on the cost of a squar metre are still in Barcelona (1,142.1 euros), Alava (1,045.4 euros) and Madrid (1,006.9 euros). On the other hand, the lowest prices are in Jaén (283.8 euros), Ourense (364.7 euros) and Toledo (400.4 euros).
In places where the population is between 10,000 and 50,000 inhabitants the price of land has only gone down by 3.3% to 314.8 euros while in areas with between 5,000 and 10,000 inhabitants the price of land per square metre costs 191.9 following a fall of 2.4%.
Region by region the biggest fall in the price of land per square metre was in Aragón (20.2%), the Comunidad de Madrid (19.2%), Ceuta y Melilla (11%), Cataluña (10.2%) and the Comunidad Valenciana (10.2%). In the Canary Islands the price of land per square metre went up by 11.8%, in Cantabria by 10.
3% and in Navarra by 8.9%.
Another significant figure indicating the delicate situation of the Spanish housing market is the drop in the number of transactions registered during the second quarter of this year which stands at 7,956 operations, which is a drop of 38.1% compared to the same period last year and 10.5% less than during the first quarter of this year.
According to the Ministry for Housing property prices have risen by 2% over the last 12 months. In real terms this shows a drop of 3% when taking into account the level of inflation over the same period.
Related: Buying land in Spain