27 country markets where the reality is very different. This is what is happening with the evolution of housing in the EU, where each state lives according to its own trajectory, according to the prices of apartments for sale and the prices of houses in the rental market.
Eurostat, the European Bureau of Statistics, has just updated its data on the housing market over the last decade, and, accordingly, Spain has undergone a completely different evolution over the last ten years from its leaving partners. Take a look at the impact of the recent real estate crisis and the explosion of a brick bubble. Also, in Spain there is currently more price pressure on the rental property market than on sale.
These Eurostat statistics detail the evolution from 2010 to the end of 2021. That is, the financial crisis, which began in 2008, has already begun and before the war in Ukraine and the uncertainty caused by this armed conflict at the gates. European Union. The data covers the phase of negative interest rates for the last five years, which seems to be coming to an end as a result of the current inflation explosion and the measures that the European Central Bank (ECB) intends to take to stop it. This escalation.
In those years, when bricks became a haven for many investors in the era of cheap financing, housing prices in Spain plummeted and recovered, albeit without comparing to the European average. It saw a nearly 30% drop in the first quarter of 2014, and since then, including the pandemic, the value has stabilized. Currently it stands slightly above the starting point.
In particular, according to Eurostat, the price of homes for sale at the beginning of this year was 0.8% higher than in early 2010, which is taken as the base year.
The fall in prices in those years was concentrated in the first third of the decade, before reaching a minimum in 2014. Since then, recovery has been slower. For example, four years after reaching the minimum, in the first quarter of 2018, the price of housing under the purchase mode was still 14.6% lower than the level reached at the beginning of the previous decade.
According to Eurostat, the evolution of rental housing in Spain is very different. For the first five years of the decade, when homes for sale plummeted after the real estate bubble burst in 2008, what was left on lease maintained a virtually constant pace, with peaks in the summer each year. This increase may be related to holiday homes, although Eurostat does not explain or provide more detailed information on these recurring fluctuations.
On the other hand, from the third quarter of 2015 to the end of 2017, the global analysis of housing rental prices in Spain remained unchanged, regardless of geographical area or housing type.
According to the EU Statistics Office, this was in the first quarter of 2018, when rental housing in Spain began to grow steadily and steadily, reaching a 4.7% price increase by the end of 2021.
These housing statistics do not match across Europe, for example, the Annual Housing Rental Price Index (IPVA), published by the National Institute of Statistics (INE).
In this case, it is an experimental statistic, not a final one, and it does not contain data for the whole state. Its sources are obtained from the tax agency and cadastral data; And leaves the autonomous community of Euskad and Navarre.
The latest data from this INE statistic was published in February this year, but covers the whole of 2020. The year marked by a pandemic where housing rents rose 0.9%, according to INE, and left an increase. 3.5%, 2.6% and 1.8% in the previous three years.
Exactly, INE on Wednesday announced the evolution of the CPI for the month of March, in which inflation was at a record high since 1985, with a 9.8% turnaround. According to these data, housing rents in March had an annual variability of 0.9%.
This discrepancy in data partly underscores the difficulty of producing updated data on the evolution of rental prices in Spain. This is the argument that the government has given to set a deadline of up to 18 months from the adoption of the forthcoming housing law – which is currently being negotiated at the House of Representatives – for the launch of the housing price index.
This will be a sign of evolution and will limit the increase in rent in stressful areas, provided that so insist on autonomous communities that have competence in housing in their area.
In addition, this year, as expected, should be perceived the current situation, where rental prices in the event of renewal of the contract limited their growth to a maximum of 2%. A temporary measure as it will be in effect until June 30th. The government approved at the end of March, as part of a shocking plan in response to the war in Ukraine, that rental income renewal rates were separated from the inflation peak.
The latest data published by Eurostat on the housing market in Spain is in stark contrast to what is happening in the EU as a whole. From 2010 to the fourth quarter of 2021, rents in the EU increased by 16% and house prices for sale by 42%.
The Community Statistics Agency explains that after a sharp global downturn between the second quarter of 2011 and the first quarter of 2013, house prices remained more or less stable in 2013-2014. Since 2015, it has become a residential home for sale. In the EU it is more expensive than renting, the evolution of which is practically constant.
Eurostat also focuses on how, since 2010, home purchase prices have doubled in Estonia, Latvia, Lithuania, Hungary, Luxembourg, the Czech Republic and Austria.
“Compared to the fourth quarter of 2021 compared to 2010”, points out Eurostat, “House prices [en venta] Rent increased in 19 EU member states “. In particular, the first increased in 24 EU member states and decreased in three, the highest increases in Estonia (+ 156%), Hungary (+ 128%) and Luxembourg (+ 124%). The decrease was observed in Greece (-23 %), In Italy (-12%) and in Cyprus (-9%).
In the lease, “Compared to the fourth quarter of 2021 compared to 2010”, Eurostat indicates that “prices have risen in 25 EU member states and fallen in two, the largest increases in Estonia (+ 171%), Lithuania (+ 113%) and Ireland (+ 74%) , While the decline was in Greece (-25%) and Cyprus (-1%). Eurostat does not analyze the specific evolution of each country by zones.
Source: El Diario
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