According to Premier Marbella news sources, the cost of new housing in Spain rebounded between April and June of this year by 5.7%. It has not slowed down in its escalation since the second quarter of 2014 while second hand property prices increased by seven tenths of a percentage point up to 7%, which now chains 17 quarters of an upward trend.
The price of housing in general in Spain increased by 2.6% in the last quarter, the biggest increase since 2015. The cost of new housing in Spain rebounded between April and June, 5.7% and has not slowed down its rise since the second quarter of 2014. The price of housing in Spain increased by 2.6% in the second quarter of the year compared to the previous three months, which is the largest quarter-on-quarter rise in the last three years, according to data released today by the Institute. National Statistics Office (INE).
Since January, the prices of new and used homes have increased by six tenths and stood at 6.8%. Construction costs soar and fuel the housing price boom. Residential construction costs have increased by 17.5% in the last 24 months and 12% only in the last year. Costs that since 2007 coinciding with the crisis were reduced by 20% and remained practically flat for more than five years, until two years ago when they have awakened from their long lethargy. The higher cost of labor has a direct impact on housing prices.
Leading Marbella property specialist Romano Keogh commented that an increase in construction costs of 40% translates to properties 20% more expensive and if the price of the land represents around 35% of the total cost, the construction costs represent 50%.
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