Spanish property prices are continuing to rise but at a much slower rate – so is it time for buyers to take advantage of this?
Property prices across the country have risen by an average of 16.5% from when the market bottomed out in 2015, but are still 33.1% lower than the height of the 2007 property boom.
So although the market is starting to cool down and price are leveling out, there is still plenty of room for growth to come and buyers could be taking advantage of this.
In January, property prices rose by 1.6% year-on-year, representing the 13th consecutive rise under 5%, according to leading Spanish property valuation firm Tinsa.
When we look at the categories identified by Tinsa, we can see that the largest price rise in January occurred for properties located in ‘regional capitals and other large cities’ – rising by 48.8% while properties falling in the ‘other municipalities’ category rose by 0.9%. However, year-on-year falls were registered in ‘metropolitan areas’ (-2%), the ‘Canaries and the Balearics’ (-2.5%) and on the Mediterranean coast (-0.3%).
In the last three and a half years, property prices in Spain’s ‘regional capitals and other large cities’ have risen by nearly 28%, while the ‘Balearics and Canary Islands’ and the ‘Mediterranean coast’ rose by 19%, followed by ‘metropolitan areas’ 13% and 6% in ‘other municipalities’.
As usual, Tinsa also published their monthly snapshot of the market, highlighting factors which contribute to movement within the property market:
The latest data (November) for the number of mortgages granted shows a 1% year-on-year increase while during the same period sales figures dropped by 8.2% and the number of building licences rose by 5.4% over the first 11 months of last year. These factors indicate a change in the overall health of the market, with a decrease in sales there has been less upward pressure on the market, leading to the minimal rises in house prices – good news for potential buyers but not so much for those wanting to sell their properties in Spain.