The study incorporates land value in the calculations of residential capital

In 2008, the total value of land and buildings of real-estate in Spain was over 5.2 billion Euros. This figure is over five times its value in 1990, having risen significantly during the housing boom decade which took place between 1997 and 2007. This information is provided by the study El stock de capital en viviendas en España y su distribución territorial (1990-2007), presented on October 7 at the BBVA Foundation.

Among those present at the event were the managing director of the BBVA Foundation, Rafael Pardo; the Ivie's research director, Francisco Pérez; and Ivie researcher and professor at the university of Valencia, Ezequiel Uriel, who directed the study. Ivie technicians Carlos Albert, Eva Benages and Vicent Cucarella also collaborated on this project.

The study measures the value of real-estate currently available in Spain, including the value of buildings and the land on which they are built. The work therefore complements the existing information in the BBVA Foundation-Ivie databases on capital stock.

Data are disaggregated by autonomous community, province, municipality size, location in relation to the coast and age of buildings.

House prices rose 12% between 1997 and 2007 as a result of increased land prices (25.2%) and construction (6.7%), while the CPI increased by 2.9% in this period. Furthermore, the total area of housing has increased at an average rate of 2.2% over the period, compared with a population growth rate of 1.4%.

Results from the study also indicate that the distribution of growth in housing values has been uneven in terms of territories. In general, autonomous communities in the south and east have seen the value of real-estate grow at a faster rate than those in the north and west of the country.

In order to calculate the value of land, the estimated value of housing in this study has been compared with residential capital gathered in the BBVA Foundation-Ivie capital stock series. The results illustrate that there has been a sharp increase in the weight that land value has in real-estate value. In 2008, land accounted for 46.2% of capital stock in housing.

Press release (in Spanish)
Presentation (in Spanish)
Database Capital stock in housing in Spain and its territorial distribution (1990-2007)
Dissemination video. This video is only available in Spanish. For more information about its content, please contact prensa@ivie.es