We have just received this months report from the Spanish Society of Valuers and overall we are pleased to say that the data looks good!
There is no hiding that fact that the Spanish property market has been through one of the worst financial crises in history, however there are very promising signs that the green shoots seen in 2016 have continued into the first quarter of 2017.
SPAIN AS A WHOLE
Looking at Spain as a whole we have seen a growth in house prices of 1.5% over the last 6 months and 2.5% over the last year. While this means prices are still considerably lower that at the peak of the boom, the signals are clear that the market is recovering in a sustainable manner. Not only is there growth, but that growth is slowly accelerating.
Focusing on a regional level we have seen substantial growth in the Spanish islands especially the Balearics which has seen a 12 month year on year rise of 4.8%
Coming to the mainland, as one would expect, the fastest regions for growth are Madrid and Catalunia – homes to two of Europe’s most important cities – at 4.4% and 4.8% respectively.
Growth has been recorded in 13 of the 19 autonomous regions of Spain however unfortunately there still signs of stagnation in the North West of the country bringing the overall average down.
It is very positive to see that the areas most associated with overseas property ownership are all performing well, with Andalucia, Murcia and the Comunidad Valenciana all seeing growth. The fastest growth of the three areas being seen in Valencia at 2.4% (which is expected with it being home to Spain’s third largest city) with Murcia and Andalucia at 1.5% and 1.6%.
Looking at mainland Spain, if we were to remove major cities from the equation, Murcia, Valencia and Andalucia would not only all still show stable signs of growth but also all three regions would remain in the bottom 50% of average prices per region. We think that this is a strong indication that, while the recovery is still in its early months, the Costas are once again becoming an attractive area to purchase property with confidence and at good value.
After a 10 year period of falling property prices Spain is showing multiple signs of recovery, as we head into the second quarter of 2017 all indications are that the property market will continue to perform well as the year continues.
We are nowhere near pre-boom growth figures or prices however we are seeing a sustainable increase in property values to the south and east of the country, fuelled by economic growth in the key cities and an increased demand for rental property.
With growth in the Balearics and the regions in the South East that are popular destinations for residential tourism out performing those in the north west, there is a strong indication that overseas demand and domestic demand for second homes, is on the up.
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