According to the latest monthly IMIE report for February from the leading Spanish property valuation firm Tinsa, nationwide average home values increased 4.1% compared to the same month in 2018.
Despite a slight slow down from January’s impressive figures, Tinsa reports that following a drop of 1% during the month, their index is now 13.8% greater than when the market bottomed out in February 2015, although still 34.7% below those witnessed at the height of the boom in late 2007.
Encouragingly, price increases were once again recorded in all categories with the sharpest year-on-year growth of 7.2% witnessed in regional capitals and other largest cities, followed by 4% growth in metropolitan areas and 2.9% growth in Mediterranean areas including our own Costa del Sol. The catch all category of “other municipalities” and the usually strong Balearic and Canary Islands recorded growth of 0.6% and 0.3% respectively.
February’s data means that home values in the regional capitals and large cities are now more than 23% greater than three and a half years ago, with the islands up 18.4% and Mediterranean coastline properties up 13.6% during the same period.
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 December show growth of 5% and 10.9% during the first twelve accumulated months of 2018.
Building license figures in December demonstrated 24.7% year-on-year growth compared to the same month in 2017 and much the same growth throughout the year.
Mortgages granted in December were 1.2% greater year-on-year and 11.3% greater during the entire year.
Unemployment data for February recorded a 5.22% decrease over the last twelve months.
Euribor interest rates, which are the basis for calculating mortgage repayments in Spain, averaged at 0.108% on average in February, an increase of 0.08 points from the previous month.
Despite the increases in mortgage interest rates (which can be largely attributed to seasonal variation), the statistics provide no real reason to expect the Spanish property market recovery to slow down. Homeowners in Spain are likely to see there real estate asset values continue to increase in the short to medium term.