Tinsa’s March 2019 IMIE report
Tinsa’s monthly IMIE report1, which charts the behaviour of Spanish property prices and compares them to the same month the previous year, was published today (Monday) in respect of March 2019. And the news is that prices are continuing to rise, albeit at a similar, moderate rate as they did in February.
Throughout the country, the average year-on-year home value surge was 3.9%, according to Tinsa’s data.
Where did Spanish property prices increase the most?
As always, the building blocks of the IMIE report are the five categories: “regional capitals and large cities”, “metropolitan areas”, “the Mediterranean coast”, “the Balearic and Canary Islands” and “all other municipalities”.
The interesting thing is that this month’s data has a larger spread than it has in recent times. That is to say, the difference between the lowest appreciating region (“all other municipalities” at -2.1%) and the highest (the Balearic and Canary Islands at 8%) is over 10%, meaning Spanish property prices really came on in some types of area but suffered in others.
Spain’s islands were the worst-performing region in February, with just a 0.3% price increment, however this was more than made up for in March, when the role reversal saw their residential real estate prices increase by more than anywhere else in the country.
The second highest contributor to the nationwide March figure were “regional capitals and large cities”, whose homes were on average 6.6% more valuable last month than in March 2018.
In the case of the Mediterranean coast, which of course is where the Costa del Sol is located, property prices continue to consolidate roughly in line with Spain’s overall monthly figure.
The region’s 4.1% increase evidences the fact that house prices on the Med are a strong and fair reflection of the Spanish property market as a whole and that it is an area where investment in residential real estate yields considerable and consistent returns.
Best March in 10+ years
Despite being a reasonably mild price increase on the face of it, the interannual 3.9% growth for the third month of the year was the largest for over ten years. This means that, since the financial crisis, no other March has experienced a more significant average gain in terms of Spanish property prices.
Year-on-year percentage rises for March have only been in positive figures since 2016, when the interannual increase was a meagre 0.8%. In March 2017 the figure went up to 2.7%, while last year the average home value was 3.6% higher than March 2017.
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