One of the most dreaded words in the world of property market is the 'bubble'. Up to a decade ago, this situation destroyed one of the main engines of the Spanish economy. What's more, the recovery has been slow and costly so it makes sense to be cautious. Experts in the real estate field warn that home rentals in the capital are rising quickly, but they cannot say the same about the property sales market.
It seems evident that house prices in Madrid are growing gradually and steeply. In fact, according to data provided by the Ministry of Development and Íñigo de la Serna in the SIMA (International Real Estate Exhibition of Madrid), the average price per square metre is currently set at 1,525 euros, which is a 2.2% year-on-year growth. These data seem to clash with the ones given by the capital's College of Property Registrars, which confirmed an increase of 4.1% compared to the previous quarter and 7.7% in the interannual rate.
The figures from Tinsa IMIE General index and Large Markets were more prudent with an increase of up to 1.8% during the last quarter. However, this source places special emphasis on the increase in prices of real estate located in large capital cities. In fact, when analysing the data related to the archipelagos, particular attention is drawn to the 6.1% rise in the Balearic Islands and 4% in the Canary Islands.