Costa del Sol property sales, rentals & management

Spain's Mediterranean property prices grow 6%

Spain’s Mediterranean property prices grow 6%

November 14, 2018
|
0 Comments
|

The on-going recovery of property values in Spain continued in October with average prices across the country increasing 5.3% according to the latest report from the leading Spanish valuations firm Tinsa.

 

Luxury apartments for sale in La Cala golf resort

Luxury apartments for sale in La Cala Golf Resort

 

October’s year-on-year increase places the average price of a home in Spain 13.1% higher than the lowest ever recorded figures when the market bottomed out at the end of 2014, however still 35.1% below those witnessed at the height of the boom just over 10 years ago in 2007.

The monthly report breaks the data down into five categories, all of which recorded increases during October. As to be expected Spain’s regional capitals and other large cities saw the most significant increases with growth of 8.3%, followed by the Mediterranean coastal areas with 6% growth. The Canary and Balearic Islands recorded growth of 4.5% whilst metropolitan areas recorded 3.8%. The category of other municipalities, where the recovery only began a year ago, recorded growth of 0.9%.

The long term picture is equally encouraging, with residential property prices increasing 21.7% in the regional capitals and large cities over the last three and a half years. Over the same period the Balearic and Canary Islands have seen rises of 17.3% and the Mediterranean coast 15.8%, while the metropolitan areas and other municipalities have recorded growth of 9.3% and 5.8% respectively.

The report also features a monthly “market snapshot” highlighting influencing factors in the Spanish property market including;

Sales figures which for the month of August show growth of 7.4% and 11.8% during the first eight months of 2018.

Building license figures in August demonstrated 25.2% year-on-year growth compared to the same month in 2017 and a 26.1% increase in the first eight months of this year.

Mortgages granted in August were 8.2% greater year-on-year and 10.5% greater during the first eight months of the year.

Unemployment data for September recorded a 6.09% year-on-year decrease dropping to 3.2 million.

Euribor interest rates, which are the basis for calculating mortgage repayments in Spain, averaged at 0.154% in October, only 0.016 points above its lowest ever rate.

Despite suggestions from some sources that the market may be levelling off in areas such as Madrid, Catalunya and the Balearics, where the recovery first started, the data provides no obvious reasons to expect the market to slow down. In fact increases in the number of building licenses is evidence that developers, buoyed by increasing prices and demand, are increasingly confident to begin new projects.