Property prices in the Costa del Sol are still
moving in the right direction and now is a great
time to buy.
Property prices on the Spanish Mediterranean coast have risen in prise by an average of 6.2% in the past 12 months according to new data from Tinsa.
On a regional level the biggest price rises were seen in the Costa del Sol, Costa Brava and Costa Blanca. Next came the properties in the Canaries and Balearics, which saw prices rise by an average of 2% compared to last year.
On a nationwide level however property prices are slightly down. The Tinsa data showed that average prices for Spanish property were down around 0.5% across the past 12 months. There’s currently no definitive reason for why these prices have gone down but some experts are suggesting that the lack of a Spanish government has caused confidence to go down in some places.
Tinsa uses their IMIE General Index data to analyse property prices and this has been their job for over a decade. The most recent data shows that Spanish property prices are still around 42% below the peak they enjoyed in 2007 which would show that the market has corrected itself since the boom and subsequent crash that followed.
Property prices in Spain were between 1,320 and 1,340 on the index since autumn 2014. This August saw the average value reach 1,322 on the index which also suggests that prices have stabilised in the past two years.
As is almost always the case in Spain there appears to be a big regional split. Property prices in small towns and inland regions have gone down by 2.8% in the past year. However prices are up 6.2% on average in the Costa del Sol, continuing the trend of rising property prices that began in 2013.
Mediterranean property prices have gone down by 46% since2007. This is still above the national average and shows just how unsustainable the prices during the boom of 2007 were. The market is much more sober these days and things become more attractive when they are sober.