The dynamics of real estate prices in Spain
20 June 2017
The average price of a second hand or new finished home in Spain increased by 3.6% in May 2017 compared to the same month in 2016, according to reports published by Tinsa, which states that the average price of a real estate in Spain is now situated at the level of December 2013. The capitals of provinces, major cities and the coast of the Mediterranean Sea of Spain were the main drivers of this growth. Tinsa is a leading company in Spain in the field of evaluation of the market value of local real estate and it also carries out the necessary certification, as well as providing consulting services.
In particular, residential properties in Spain have increased their prices in the fifth month of this year by 6.1% in capitals and large cities compared to May 2016, while in the Mediterranean coast there was an increase by 4.7% in real estate prices.
Apart from the Mediterranean coast and the main cities, the value of properties in Spain also increased in the Balearic Islands and in the Canary Islands, and in small towns in other municipalities, with annual growth of 2.9% and 2.2%, respectively. The only fall in prices was recorded in metropolitan areas, where prices of house and apartments in Spain fell by 0.3% in May 2017 in annual terms.
Thus, in general, during the first five months of this year, the Mediterranean coast registered a growth in the prices of residential properties in Spain by 6.1% compared to 2016 at the end of the year; in the capitals and main cities of Spain the growth has been by 5%; the growth in the Balearic Islands and in the Canary Islands reached the 4.2%; the growth in other municipalities has been equal to 1.7%, while in urban areas, the increase has been by 0.4%. The average national price of real estate in Spain increased by 3.4% until May 2017, according to the official evaluation company Tinsa.
The highest prices for Spanish properties were recorded in 2007, and since then the average price of real estate in Spain has fallen by 39.2%. The Mediterranean coast continues to lead this decline (-45.6%), followed by megapolis (-44.5%), provincial capitals and large cities in Spain (-41.3%).
Regions in which the lowest decrease in residential real estate prices in Spain since 2007 were recorded were the Balearic Islands and the Canary Islands (-27.7%) and other municipalities in the country (-35.9%).
Real estate experts from Spain point out, meanwhile, that the years in which the price of apartments and houses here fell, were left behind. The housing fund of Spain arouses interest, especially of investors, but also from those who believe that prices will not fall further. The resumption of the issuance of mortgage loans and the improvement of the economic and employment situation also help to maintain interest in the purchase of a house or apartment in Spain.