Average Spaniard needs 8 years of salary to buy property

7th April 2016, Comments 0 comments

In this country, the average person would need 7.6 years of his salary to be able to purchase an average property, which is slightly higher than the 7.4 years registered during the last quarter of 2015.

In Spain the average person would need 7.6 years of his salary to be able to purchase an average property, which is slightly higher than the 7.4 years registered during the last quarter of 2015.

This is based on the fact that the average price of a property per square metre is currently situated at 1,433 euro.

In the regions where house prices are more expensive, the average wage of its residents are generally higher than those elsewhere.

However, despite the fact that the price per square metre of urban land is the highest in the regions of the Basque Country(2,093 euro), Madrid (2,024 euro) and Cataluña (1,886 euro), residents living in the regions of the Balearic Islands (15.8 years),Cantabria (9 years) and Madrid (9 years) need a greater amount of their salary to pay for an average property.

In Murcia, however, this figure is reduced to just 5.4 years. And all the above figures are way off what the average person needed during the property boom, when 13.7 years of salary were required in 2007.

The average price of a property in Spain registered at 1,433 euro/square metre during the first quarter of 2016, which is anannual decline of 0.5%, according to statistics from property valuators ST Sociedad de Tasación.

These figures show that house prices are continuing to stabilize in this country, but when you look at prices and variations of the different autonomous regions, the difference between the most expensive areas for real estate and the least expensive is enormous.

House prices are the highest in the province of Guipúzcoa in the Basque Country (2,318 euro/square metre) followed byBarcelona (2,069 euro/square metre), while the cheapest properties to buy are found in Badajoz (821 euro/square metre) andCuidad Real (830 euro/square metre).

And with regards to autonomous regions, house prices are at their highest in the Basque Country (2,093 euro/square metre), despite the fact that prices here fell 2.2% from last year. After the Basque Country are Madrid (2,024 euro/square metre) where prices rose 0.4% annually, and Cataluña (1,886 euro/square metre), where prices also went up 0.3%.

The only other regions in which house prices rose from a year ago are the Balearic Islands (0.9%) and Murcia (0.2%).

In all other regions apart from the four mentioned above, property prices fell, with the biggest reductions in Aragón (-2.9%),Asturias (-2.9%) and Cantabria (-2.7%).

At the other end of the scale, property is the most affordable in Extremadura (838 euro/square metre) and Castilla-La Mancha(900 euro/square metre), the only regions where prices register below the 1,000 euro/square metre mark.

Source: www.idealista.com

 

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