Statistics in the latest Spanish home values report from Tinsa reveal year-on-year growth of 5.6% during August with prices in almost all categories increasing throughout the country.
The growth witnessed throughout the last twelve months places the average price of Spanish property at 11.6% greater than when the market bottomed out in 2015, yet it is still some 36% below that of the peak of the boom.
The valuations firm break the figures down to five key areas demonstrating the varied nature of the recovery in prices. As to be expected the sharpest increases were recorded in the “regional capitals and other large cities” category which registered year-on-year growth of 9.8% with the “Balearic and Canary Islands” following closely with 9.2% growth. Conversely the “metropolitan areas” category experienced more modest increases of 2.4% and the catch-all category of “other municipalities” saw a modest drop of 0.4%.
Influenced significantly by the Costa del Sol in terms of real estate activity and property transactions, the “Mediterranean coast” category registered year-on-year growth of 4.6%, more than twice that recorded the previous month.
More encouraging is the long term picture with residential property prices rising 19.7% 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 18.9% and the Mediterranean coast 14.8%, while the metropolitan areas and other municipalities have recorded growth of 9.2% and 2.6% 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 June show growth of 1.8% and 11.3% during the first six months of 2018.
Building license figures in May demonstrated 26.6% year-on-year growth compared to the same month in 2017 and a 23.8% increase in the first five months of this year.
Mortgages granted in June were 3.9% greater year-on-year and 9.8% greater during the first six months of the year.
Unemployment data for August recorded a 5.92% year-on-year decrease dropping to 3.18 million.
Euribor interest rates, which are the basis for calculating mortgage repayments in Spain, averaged at 0.169% in August, only 0.01 points above its lowest ever rate.
With no obvious reasons to expect the gradual recovery witnessed over the last two years to be reversed, the combined factors once again suggest the conditions are ripe for continued increases in demand and therefore consequently market values.