The price of housing is skyrocketing in several peripheral districts of Madrid, Barcelona and Valencia. Although according to data from the appraiser Tinsa in 2018 the average value of real estate increased by 5%, in some of these areas the percentage of increase exceeds 30%. This is the case of the district of Rascanya, in Valencia, where prices rose in the last quarter of last year by 32.4% year-on-year. In this city, housing also increased by 19.9% in L'Olivereta and 18% in Camins al Grau.
In the case of Madrid, the greatest increase was registered in Villaverde -25.6% -, followed by Ciudad Lineal -21.6% – and Vicálvaro -19% –. In Barcelona, the strongest increase was located in the neighborhood of Sant Andreu, with 18%. Once prices have recovered in the most central districts due to the boost in demand, buyers who are joining the market and can not access the homes in these areas move to the surrounding areas, which is causing these advances . In other large cities such as Seville and Zaragoza, with a lower overall recovery, they are the main areas where there is still a greater appreciation.
The increase in prices in Madrid and Barcelona has boosted the financial effort, the gross family income earmarked for the payment of housing, up to 26.9% and 27.8%. These are levels that Tinsa considers excessive. The appraiser understands that this effort should in no case exceed 25%. Both cities have two of the highest average mortgage rates in the country, with 739 euros in the case of Madrid and 731 euros in the case of Barcelona. The highest is the Balearic Islands, with 849 euros.
The consolidation of the recovery of the real estate sector led to the fact that last year prices were already growing in all the autonomous communities, although in regions such as Extremadura, the increase was more than modest, 0.4%. At the regional level, however, territories remain negative, although all below -5%. The largest was registered in Soria (-5.2%), followed by Cuenca (-4.8%) and Zamora (-3.2%). The largest increases were registered in Lérida -10.9% – and Madrid -10.8%.
The average price of housing in Spain has been evolving upwards since the third quarter of 2016 without interruption. However, since the post-crisis minimum accumulates a revaluation of 11.7% and is still 34.7% below the maximum that marked in its zenith, at the end of 2007, according to the data of Tinsa.