Since the market bottomed out in 2015, property prices across Spain have risen by 12.1%, according to leading property valuation Tinsa.
In the last 3.5 years property prices in all of the categories identified by Tinsa have risen, led by a 19.4% rise in ‘regional capitals and other large cities’ and followed by the ‘Balearic and Canary Islands’ (18.2%), ‘Mediterranean coastal areas’ (15.7%), ‘metropolitan areas’ (11.5%) and the catch-all category of ‘other municipalities’ (3.4%), according to Tinsa.
If we break it down to the latest monthly available data (September), property prices across Spain rose by 4.8% – led by a 7.3% rise in the ‘regional capitals and other large cities’ and followed by rises of 4.7% in ‘Mediterranean coastal areas’, 4% in ‘metropolitan areas’, 3.9% in the ‘Balearic and Canary Islands’ and 0.9% in ‘other municipalities’
There has been some speculation that the market will soon start to slow down in areas which had an early start to the recovery as demand outweighs supply. However, it is encouraging to see that in August house sales across Spain rose by 7% and in July (the latest monthly data available) there was a 46.2% year-on-year increase in the number of granted building licences, according to Tinsa’s monthly ‘market snapshot’ bulletin.
This, along with rising house prices, shows that the market is still buoyant; demand for Spanish property, especially in cities and coastal locations is rising, developers are still able to make a profit on new builds thanks to growing house prices and they are adding to the supply chain hoping that it will be enough to prevent the market from cooling down any time soon.