The price of housing in 2019

The price of housing in 2019

In 2019, the price of housing will continue to be on the path of growth although in a more moderate way than in previous years. Most real estate experts have reached this conclusion. If the forecasts are met, then we should not expect a large increase in real estate prices during 2019. Last month, in January, we wrote an article in this blog about housing forecast for 2019. We stated that in the main Spanish cities the widespread price increase which had taken place during many years was coming to an end. We also wrote about the contrasts of real estate prices depending on each different area in Madrid. In Madrid, the most demanded neighbourhoods gradually increased in price after the real estate bubble burst. However, this rise seems to be weakening, and it looks as if prices are cooling-down in the centre of the main Spanish cities. This slowing price increase makes us think about moderation after having gone through many years of a nonstop price rise. What will happen regarding housing price in 2019? Let´s analyse it.

The price of housing in 2019

ON THE PATH OF MODERATION

According to Urban Data Analytics, last year, housing price in Spain increased 5,15%, whereas the forecast for 2019 is a 3,75% rise. Therefore, these facts and figures show a slight decline. Furthermore, in 2018 there had also been a drop with regard to the year before. So, it is obvious that the widespread price increase which we have been witnessing year after year has come to an end. Thus, we can state that Spanish real estate is, slowly, on the path of moderation. We must point out that the 3,75% price rise which is forecast for 2019, refers to the average figure in Spain. We also know that in Spain, there is a huge difference in price depending on the province. In Madrid, Barcelona and the Balearic Islands property is more expensive than in other provinces. The Balearics draw our attention because it is predicted they will have the highest price rise in all Spain, reaching more than 10%. Next, comes Barcelona with an 8,58% rise and after, Madrid with an 8,35% increase. On the other hand, in 15 other provinces a decline in housing price is expected.

The price of housing in 2019

RENTING IS ON THE RISE

According to Urban Data Analytics, the price of renting will increase more than 10% in 2019. In fact, the national average will rise 10,15%. Last year, we wrote an article in this blog about how and why renting in Spain has sparked off. Urban Data Analytics states that the picture will not change much and it even goes a step further and compares prices with the years of the real estate bubble. In those days the purchase price was much higher than at present and it was no less than 40% above the price which is forecast for 2019, whereas the difference in renting was lower being 0,59%. This means that, unlike purchase, renting price has not been reduced with regard to those days. This fact is very disturbing when we think about the difficult times we spent overcoming the real estate bubble. We will have to keep an eye on the development of renting to see if there is a starting on the road to moderation.

Picture 01: Images Money 

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