According to the latest IMIE (monthly real estate price variation) report from Tinsa, Spanish house prices grew 6.5% in December 2018 compared to the same month the previous year.
The latest monthly report published by the leading Spanish valuation firm reveals 6.5% year-on-year growth in home values during December last year as the ongoing price recovery continued in all categories across the country.
The figures, which represent the greatest December growth in over ten years, mean that average Spanish property values have recovered by 14% since the market bottomed out in February 2015. Broken down into categories the report demonstrates the staggered nature of the recovery with home prices in Spain’s regional capitals and other large cities increasing over 22% in the last three and a half years and 21.6% in the Balearic and Canary Islands. The Mediterranean Coast category, which includes property on the Costa del Sol, also performed better than the national average with 18.1% growth during the same period, whereas the catch all category of “other municipalities” only recorded 4.9% growth.
In terms of the breakdown of figures for December, the islands recorded the sharpest year-on-year increase at 10.6% (the only time home price growth for any category topped 10% during the whole of 2018), regional capitals and other large cities recorded 8.7% growth, followed by Mediterranean coastal areas with 6.7%, whilst metropolitan areas and “other municipalities” saw increases of 3.6% and 2.9% 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 November show growth of 3.9% and 11.6% during the first eleven months of 2018.
Building license figures in October demonstrated 16.1% year-on-year growth compared to the same month in 2017 and a 23.2% increase in the first ten months of this year.
Mortgages granted in October were 22.9% greater year-on-year and 11.7% greater during the first ten months of the year.
Unemployment data for December recorded a 6.17% year-on-year decrease during 2018.
Euribor interest rates, which are the basis for calculating mortgage repayments in Spain, averaged at 0.129% in December, a marginal increase of 0.02 points since November.
Despite the slight upturn in mortgage interest rates, the statistics provide no real reason to expect the recovery to slow down. Decembers impressive price growth figures place the average percentage variation for last year at 5% and the conditions appear to be right for price increases to follow a similar pattern in 2019.