The residential property market in Spain continued its recovery during the first three months of 2017 with average prices increasing 2.2% compared to the same period the previous year.
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According to figures recently released by the Ministry of Development, Q1 saw the eighth consecutive quarterly market increase with average property prices reaching 1,525.80€ per square metre, taking the figure to a level last witnessed in 2012. The number of official property valuations, from which the property pricing data is compiled, also grew by 6.5% during the same period, yet another indication of the increased levels of activity in the Spanish property market.
The figures also demonstrate rising prices between January to March for both older and new properties (under five years old) with increases of 2.1% and 3.1% respectively. However, the disparity across Spain’s 17 autonomous regions continues with Catalunya witnessing 5.4% growth, whilst in contrast Extremadura reported a 2.3% drop in average home prices.
The future is looking bright for Spanish real estate, property market activity is growing due to increased buyer confidence following economic growth, falling unemployment, easier access to lending and record low mortgage interest rates. Despite the continued growth however, average Spanish property prices still remain 27.4% below those of early 2008 prior to the market crash.