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| Costa del sol continues to be a great investment |
Data on the price of Spanish property from valuation firm
Tinsa shows that the average selling price of property in Spain was 2.3% higher
this June compared to June of last year, bringing the streak of monthly
increases in house prices to 10 straight months.
While the data from Tinsa doesn’t go into the actual average
property price for each region, it does show the largest increases in prices
are found in the coastal regions and major cities. The average property price
for regional capitals was 4.2% for example, which is above the national
average. While property prices increased an average of 2.4% across the
Mediterranean coastline.
When analysing the average house price across the first half
of 2017, Spanish property prices were up 2.8% compared to the first half of 2016,
with island property prices seeing the sharpest increase at 7.2%.
The price increases will no doubt be welcomed because they
are gradual and steady. There hasn’t been a price shock, spike, or crash across
the past 18 months plus. It’s just been a consistent increase in demand, which
means a consistent increase in price.
These factors are giving economists and property experts
alike plenty of encouragement. They can see for themselves an industry with
plenty of foreign investment and a growth in domestic interest, as well as
increasing confidence from businesses and lenders.
This is the reason for the 2.4% increase in building licenses across the past year. It’s also why actual sales increased 23%
year-on-year as of May, and mortgage approvals increased 10.4% in April – a
figure that correlates with the decrease in unemployment as Spanish
unemployment has fallen 10.7% across the past year.
