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Spanish house prices grow 6.8% in January

Spanish house prices grow 6.8% in January

February 15, 2019
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The first monthly IMIE report on Spanish house prices of 2019 shows a nationwide increase of 6.8% in January compared to the same month last year.

 

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The monthly data from the leading Spanish valuations specialists Tinsa reports the best January figures for over ten years with growth in home prices recorded in all categories across the country. According to Tinsa, residential property values are now 14.9% greater than when the market bottomed out in February 2015, although still 34.1% below those witnessed at the height of the boom in late 2007.

The sharpest year-on-year rise was recorded in the Mediterranean areas, which includes the Málaga province and the Costa del Sol. Property values in this category grew some 10.1% in January, the greatest Y-O-Y rise witnessed during the first month of the year since Spain was hit by the financial crisis.

Elsewhere, Spain’s regional capitals and other large cities recorded 9% growth, followed by metropolitan areas with 6.8% growth, 6.6% in the Balearic and Canary Islands and 1.5% in other municipalities.

The latest figures place home values in the regional capitals and large cities at 22.9% higher than three and a half years ago, with the islands and Mediterranean coastline 23.5% and 19.2% higher respectively.

As always 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 November demonstrated 40.1% year-on-year growth compared to the same month in 2017 and a 24.7% increase in the first eleven months of this year.

Mortgages granted in November were 15.9% greater year-on-year and 12% greater during the first eleven months of the year.

Unemployment data for January recorded a 5.49% year-on-year decrease during 2018.

Euribor interest rates, which are the basis for calculating mortgage repayments in Spain, averaged at 0.116% on average in January, a marginal increase of 0.03 points since November.

Given that many commentators are predicting Spanish house prices to grow between 5% – 7% in 2019, the latest figures should come as no surprise despite the increases in mortgage interest rates and unemployment figures (which can be largely attributed to seasonal variation). The statistics provide no real reason to expect the Spanish property market recovery to slow down, however with house prices predicted to grow sustainably in the near future, it is unlikely we will see year-on-year increases exceeding 7% in the coming months.