The first quarter of 2018 has already begun to shape what looks set to be a very strong year for property prices in Spain…
After positive data for January and February, the home value figures for March are in and – unsurprisingly – they reveal a continuation of the upward trend.
According to property valuation firm Tinsa, homes in Spain rose in value by an average of 3.8% in March, with relatively contrasting fortunes across the different regions of Spain.
In the main Spanish cities property prices increased by an average of 6.8% against March 2017, but in some of the less popular regions the increases were minimal.
Most notably, however, was the 2.3% decline in home values this March in the Balearics and Canary Islands against the same month last year: a contraction that comes as a little bit of a surprise given the supply constraints inherent to the islands.
On the mainland it was a different story. Mediterranean regions – the Costa del Sol included – saw average increases of 3.3%, according to Tinsa, and similar rises are expected over the next few months at least as we head into summer.
March’s data almost matches the first quarter data as a whole, which saw a 3.9% increase in property prices against the first quarter of 2017.
Nationwide, homes in Spain are now priced at the same average as they were in 2013, having risen in value by approximately 10% since the bottom of the market was reached in 2014. The sector still has some way to go before it returns to the pre-bust days of 2007 – properties remain around 37.2% cheaper than during those heady days.