New Data Shows Spanish Property Prices
to Increase 1.8% in February
|Prices continue to surprise everyone as the recovery is in full swing|
There have been 11 monthly price increases over the past 12 months, and Tinsa say that this is the best rise year-on-year, and continues the trend that began all the way back in 2014.
Breaking it down into regions; the Balearics was the region with the deepest property price increases. Average home prices rose 4.4% here. The Canary Islands came in second, with 4%.
It won’t come as much of a surprise that these are the two markets leading the way this time of year. The Canaries are popular all-year round. The interest in tourism and property stays strong during the winter, unlike mainland regions thanks to the climates of places such as Lanzarote, Tenerife, and Fuerteventura.
While the Balearic islands do experience a similar climate to the south of Spain during the winter, property prices are pushed up and above the average due to the difference between supply and demand. The islands are always popular, but they are too small for unrestricted housebuilding.
Back in the mainland, regional capitals – such as Malaga in the Costa del Sol – saw average property price increases of 3% during February, while there was an average increase of 0.9% for the Mediterranean coastal regions since the start of the year.
Tinsa published further data that painted a broad picture of the trends of the Spanish property market, including an increase in building licenses of 28.9% during 2016 compared to 2015, along with mortgage approvals increasing 14.8% over the space of a year.
Unemployment fell by 9.7% in 2016 according to the Tinsa data, which is why home transactions increased 13.8% during 2016 compared to 2015.