According to Tinsa, the leading Spanish valuations firm, the Spanish property price recovery continued in June with the overall Spanish property price index 2.3% higher than it was in the corresponding month in 2016.
Not only has Spain now witnessed year on year increases in each of the last ten months, but more encouragingly, almost all categories are recording rises in the value of residential property. Regional capitals and other large cities reported the greatest increases at 4.6%, closely followed by metropolitan areas with increases of 4.2%. Mediterranean coastal areas saw average prices rise by 1.9% over the twelve month period whilst the Balearic and Canary islands rose 1.5%. The only category to record a fall in prices was that of “other municipalities” (predominantly rural areas well away from the major cities and coastlines) with -2.6%.
Equally compelling, if not more so, are the figures for the first six months of this year. The category of “other municipalities”, again saw a fall, this time of 2.3%, however substantial growth was recorded in other categories including the Islands (7.2%), capitals and large cities (5.2%), Mediterranean coastline (2.4%) and metropolitan areas (2.2%). Combined these increases lift the overall index to 2.8% higher than at the end of last year.
Tinsa’s monthly report also includes a snapshot highlighting market indicators expected to effect the value of Spanish home prices. Key points of note include a 23% year on year increase in sales figures in May with an 11% rise in the first quarter of 2017, a 2.4% year on year increase in building license approvals in April with a 15.1% increase in the first four months of 2017 and a 6% rise in the number of mortgages granted in the first four months of 2017.
Combined with historically low mortgage interest rates all indicators would suggest the market is prime for continuing demand and consequently further increases in residential property values.