Housing up 3% in the euro area, the largest increase since 2008

12/07/2016

The increase in Spain was 6.3%, the biggest rise since the bursting of the bubble. The price of housing in the euro zone increased by 3% in the first quarter and recorded the biggest increase since 2008, according to data released Tuesday by Eurostat. In Spain, the rise was 6.3%, the largest since the third quarter of 2007, before the outbreak of the housing bubble. The Spanish market has eight consecutive quarters of annual increases in the price of housing, after six years of declines.

Construction of new housing blocks in the PAU Arroyo del Fresno de Madrid. / JAIME VILLANUEVA
Construction of new housing blocks in the PAU Arroyo del Fresno de Madrid. / JAIME VILLANUEVA

Spain is the country of the European Union where more has fallen housing prices since the crisis, and despite the rise in recent years, its value is 32% lower than the peak recorded in the third quarter of 2007. "the important thing is that the trend is consolidated and prices have stopped falling," said Susana de la Riva, communications director of property valuation company Tinsa Tuesday. "We are facing a stabilization of prices, but we can not yet speak of a clear growth" it has clarified De la Riva. The director clarified that, according to projections of the company, prices will continue to rise in the coming months, driven by "economic growth and job creation."

In the fourth quarter of 2015, prices on the Spanish market had registered an annual increase of 4.3%, two tenths less than in the third quarter last year. In the first three months of 2016, the price experienced a quarterly increase of 1.4%, the highest since the second quarter of last year, when it increased 4.1%.

In the euro zone, the price increased by 3% yoy in the first three months of the year, four more than in the fourth quarter of 2015. The quarterly increase tenths was 0.4% and exceeded the increase of 0.1% It occurred between September and December. For the whole of the European Union, the price increase in the first quarter was 4% yoy and 0.7% qoq.

Hungary (+ 15.2%), Austria (+ 13.4%) and Sweden (+ 12.5%) recorded the highest annual increases. In Italy and Cyprus drops of 1.2% observed in housing prices. Compared to the previous quarter, the biggest rise in house prices corresponded to Hungary (+ 5.2%), followed by Austria (+ 4.2%) and Romania (+ 3.3%), while the descents more important were recorded in Cyprus (-3.4%) and Malta (-2.8%).

Source: http://economia.elpais.com/economia/2016/07/12/actualidad/1468316569_708759.html