Spanish Property Prices Up At Highest Rate In Over Eight Years

Spanish Property Prices Up At Highest Rate In Over Eight Years

Spanish property prices were up 6.3% leading up to March 2016. Spain may have experienced some frantic campaigning in the lead-up to the general election last week, but the political situation caused by the December general election seems to not have affected the revival of the property market.

This was further evidenced after the national statistics unit published data showing that not only is the market growing, but property prices are also up by 6.3% in the 12 months leading to the 31^st of March 2016. This is the eighth year in a row that prices have risen following the six year year-by-year fall in prices since 2007.

It’s made better news because this rise is being seen in every Spanish region. 6.3% is only the nationwide average with some areas, such as Madrid, seeing higher rises. Madrid saw the highest rises of 9.7%, the Balearics saw a rise of 8.8%, Catalunya saw a rise of 8.6% and the Canaries saw a rise of 5.9%.

Prices were up 1.5% over the rise seen in the previous quarter. The regional variations were as varied as the regional variations in overall price rise. Prices in Madrid were up 2.9% over the last quarter with a rise of 2.1% in the Canaries, a rise of 1.5% in both the Balearics and Galicia. However there was a 0.2% drop in property prices in La Rioja and a 0.4% drop in Castilla-La Mancha.
One of the biggest rises was properties for sale in the Costa del Sol as it continues its recovery.

Eight Year High Spanish Property Prices Continue to Rise

Eight Year High Spanish Property Prices Continue to Rise

Costa del Sol is seeing a massive return of savvy investors

buying property again.

With the Spanish property market looking so great and being so affordable there’s really no reason to not invest in Spanish property.

The average value of property in Spain has gone up by 6.3% in the first quarter of 2016. The new data shows a rise that hasn’t been seen since the third quarter of 2007.

The Spanish National Statistics Institute (INE) released the figures showing how the property market in Spain is re-emerging after the property bubble was burst in 2008.


The market slumped for five years which drove down property values, scared away investors, and created a general feeling of malaise in Spain as the economy cycled through anaemic growth, a loss of confidence, and austerity measures that punished more than they helped.

Data from the INE showed that by the middle of 2013 Spain broke through at last and the second recession was ending as there was a positive increase in GDP and employment rates and house sales were on the rise. Shortly after this property prices started to climb and now the value of resale homes was up by 6.4% during the first three months of 2016.

The new-build and off-plan property market also saw a nice boost. This area felt the brunt of the damage with many developers going out of business, leading to buildings that were either uncompleted or unsold. This also led to an oversupply that brought house prices crashing down. Now the market is up a generous 6.1%. All in all the first quarter of 2016 has been the most promising quarter for real estate since the third quarter of 2007.

The difference this time is that the rise in the market isn’t likely the forebear of another crash. The growth has been temperate this time around. As a result it is more sustainable. It’s also based more on the sustained economic growth and the interest coming from both domestic and foreign investors.

When it comes to actual house sales the INE data shows that the amount of transactions in the residential housing market of Spain was up by a massive 29% over the April in 2015, with a grand total of 35,199 properties changing hands. There hasn’t been a year-over-year increase this big since August 2010. It further proves that buyers are flocking back to the Spanish property market.