Average Spanish property values grew 4.2% in May 2018 compared to the same month of the previous year according to Tinsa.
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According to the latest residential property report from the leading valuation firm Tinsa, the ongoing Spanish property market recovery continued in May as the average value of homes in Spain increased 4.2% year-on-year, marking the best results for the month of May since 2007.
The average value of housing in Spain is now more than 10% greater than that of February 2015 when the market bottomed out, however there is still some way to reach the heights of 2007 with prices still 36.7% below those witnessed at the height of the boom.
Of all categories identified by Tinsa it is encouraging to see growth recorded across the board. Led by regional capitals and large cities (6.8%), with the metropolitan areas (5.4%) and the Mediterranean coast (3%) along with the Balearic and Canary islands (2%) following closely behind, even the catch all category of “other municipalities” witnessed increases of 0.1%.
The report also features a monthly “market snapshot” highlighting influencing factors in the Spanish property market including;
Sales figures for the month of March which, although displaying a 2.2% drop caused by the early Easter, also show growth of 12.1% for the first quarter of 2018.
Building license figures in February demonstrated 26.9% year-on-year growth compared to the same month in 2017 and a 17.4% increase on the first two months of the previous year.
Mortgages granted in March were 5.2% lower, again almost certainly due to the early Easter, but the quarterly results were 5.6% greater than 2017.
Unemployment data for May recorded a 6.04% year-on-year decrease dropping to 3.25 million.
Euribor interest rates, which are the basis for calculating mortgage repayments in Spain, remain close to their lowest ever at 0.188%.
All of which points toward a market of increasing property values driven by increased demand inland and on the coast. Particularly encouraging are the increases in the number of building licenses for new residential properties, highlighting the fact that developers are confident in continued increases in property values due to a lack of supply in certain areas.