Spanish Mediterranean properties see 6.2% price rise in year to August

 

Homes along Spain’s Mediterranean coast have registered an average price increase of 6.2% in the past 12 months, new data from Tinsa has revealed.

Regionally, property values in the Costa del Sol, Costa Brava and Costa Blanca rose the most in that period, followed by properties in the Canaries and Balearics, where values are an average of 2% higher than last year…

The national trend, however, is a slight decline in values. According to the Tinsa data, the average price of Spanish property fell 0.5% over the space of a year. There are no known causes for this slight contraction, but some experts have suggested that Spain’s lack of government may have harmed confidence in some areas of the country.

Tinsa uses its IMIE General Index to analyse property prices, and has done so for more than a decade. Recent data shows that the average property price in Spain is some 42% below the peak levels found in 2007 – which suggests a strong correction in value since the boom and subsequent crash.

Since autumn 2014, the level of average prices in Spain was between 1,320 to 1,340 points on the Index. In August this year, average values were 1,322 points, which again hints at a stabilisation of prices over the past two years.

However, as ever in Spanish life, there is a big regional split. Home values in small towns in inland regions have fallen by 2.8% over the last year. Not so on the Costa del Sol, where an average 6.2% price increase builds upon sustained value gains since 2013.

Since 2007, Mediterranean property prices have fallen 46% – which is above the national average and further indication of how the 2007 boom fuelled unsustainable prices. Today, the market is much more sober… and when things are sober, they are much more attractive.