Spain property price recovery continues apace

Property prices in Spain are now 11.6 per cent higher than they were when the market bottomed out in February 2015.

The latest residential property price data released last week by property valuation firm Tinsa, show that property prices across Spain are now 5.6 per cent higher that they were a year ago.

However, prices are still 36 per cent lower than they were at their peak in the early-to-mid noughties, before the global credit crunch sent them on a downward spiral.

The country’s property market is currently being particularly boosted by sharp rises in regional capitals and large cities, as well as strong growth on the Canary and Balearic Islands and some Mediterranean coastal areas.

Prices in regional capitals and other large cities have risen by 19.7 per cent since Spain’s housing market recovery began three-and-a-half years ago. Elsewhere, property prices on the Balearic and Canary Islands have risen by 18.9 per cent in this period, while on Mediterranean coastal areas house prices have grown 14.8 per cent.

In Metropolitan areas the growth has been less pronounced, 9.2 per cent, but it is in the catch-all category of ‘other municipalities’ that the market is really struggling to recover. Prices in these areas, which account for a large swarth of the country, have risen only 2.6 per cent since the recovery started.

The latest Tinsa figures also show that the number of house sales in Spain are continuing to increase. In August, 1.8 per cent more sales were completed than in the same month a year earlier.  Since the start of 2018, the number of completed property sales has increased by 11.3 per cent from the same period of 2017.

Article published 9th October 2018