Mixed outlook for Spain’s property market

New figures show that while house prices in Spain continued to rise throughout the first half of 2019, they are starting to slow now.

The latest data released by Grupo Tecnocasa and the Universidad Pompeu Fabra (UPF), shows that property prices in Spain increased by average of 7.05 per cent in the first half of the year. The average price of a home in Spain 2,363 euros per square metre.

The study reveals that house price growth is no longer greatest in the country’s largest cities. In fact, Barcelona recorded property price rises in the first six months of the year that were generally below that of the national average.

However, while prices may have risen in the first six months of the year, separate figures looking at activity in July suggest the market is slowing down.

The latest data published by Spain’s notaries earlier this week displayed a 20.8 per cent decrease in sales figures year-on-year, and a 23.3 per cent decline in mortgage activity.

The average price paid for a property also fell in the 12-month period. The figures show that the average price paid for a unit of housing was 1,453 euros per square metre in July 2019 – a 1 per cent drop compared to the average price paid in the same month a year earlier.

However, the notaries report does note that these figures are hard to analyse as variations in average prices are not necessarily due to any nationwide trend and can be distorted by more properties being sold in a part of the country where prices are either higher or lower.

Article published 12th September 2019