The average price of Spanish property grew 6.5% in June of this year as the market experienced the sharpest year-on-year rise in property values since 2007.
The latest monthly report from the leading valuations firm Tinsa, which details Spanish residential property prices, reveals that the average price of housing across Spain in June this year was 6.5% greater than the same month in 2017. This marks the greatest surge in annual prices since 2007, the year that marked the height of the real estate boom in Spain.
Whilst these latest figures are still 35.7% below the values recorded during the peak of 2007, they are now 12% higher than February 2015 when the market bottomed out. Furthermore monthly increases such as these are becoming all the more frequent, in line with increased numbers of property transactions and renewed investor confidence.
Spain’s Mediterranean coastline witnessed above average growth recording increases of 7.4% during the same period. Property on the Mediterranean coast, which includes the Costa del Sol, came second only to “regional capitals & large cities” where the sharpest rise of 10.2% was recorded.
The report also features a monthly “market snapshot” highlighting influencing factors in the Spanish property market including;
Sales figures which for the month of April grew of 29.7% due to this years early Easter and 16.1% during the first four months of 2018.
Building license figures in April demonstrated 44.8% year-on-year growth compared to the same month in 2017 and a 22.9% increase in the first four months of this year.
Mortgages granted in April were 35.7% greater year-on-year and 12.3% greater during the first four months.
Unemployment data for June recorded a 5.97% year-on-year decrease dropping to 3.16 million.
Euribor interest rates, which are the basis for calculating mortgage repayments in Spain, remain close to their lowest ever at 0.181% average in June.
In other words the statistics, which Tinsa describe as “dynamic”, drive home the fact that now is a great time to buy property in Spain, particularly on the Mediterranean coastline and the Costa del Sol where the market has remained buoyant for the last few years as demand continues to grow.