Friday 7 October 2016

Spanish Property Prices Continue Steady Climb in Summer

Spanish Property Prices Continue Steady Climb in Summer

Even Breix hasn't stopping the continual rise of prices
Spanish property prices are being knocked up a little as banks are becoming more generous with their money, which leads to higher demand and property prices.

Average house costs in Spain have risen by around 2% over the past 12 months leading to June 30th, according to Ministry of Development data.

The figures from the Ministry show that the average price for a square metre of property is €1,506. This is the first time that figure has risen past €1,500 per-square-metre since 2013. The data also confirms that this quarter is the fifth in a row where the property prices were higher over the previous year, a complete turnaround on the six-year trend that saw the opposite be true.

To put it simply Spanish property prices have stopped declining, have stabilised, and have even begun increasing. There are some regions where property prices have been rising for a little longer, such as the ever-popular Costa del Sol, while other regions, particularly the inland regions that rarely see tourists or investors, have struggled to catch up.

Nowadays it looks like even that trend has stopped. The economic recovery of Spain may be slow but it’s steady and tangible. This year there were more jobs and a greater level of employment security than over a decade in Spain. This, when coupled with the confidence in the banking sector, has led to a market that is great for investment; which leads to property prices increasing.

Unfortunately not everyone is enjoying higher property prices. The trend is bucked in some regions including Navarra, Aragón and the Basque Country, where property prices are still declining.

It’s also worth noting that, while property prices are rising, they are still below the peak of 2008. Back then a square metre of property was worth around €2,101. These days house prices are around 28% less but they are at least above the lowest point of €1,456 per square metre seen in the third quarter of 2014.