It’s Official: Med Property Prices are Rising Faster than Spanish Average

It’s Official: Med Property Prices are Rising Faster than Spanish Average

The Mediterranean property prices in Spain have risen by an average of 4.4% over the past year. This is higher than the average for the nation overall.

An analysis of Spain’s property market performed by Tinsa, a real estate appraisal firm, has discovered that the value of homes in and around the Mediterranean resorts was rising faster than the average for the rest of the country.

Buying property in Costa del Sol is clearly on the up.

During the first quarter of the year property prices increased by around 4.4% on average in the Mediterranean when compared to the same period of time from last year.

This is over double the national average for the rest of the country. On average property prices have risen by 1.9%. In the more metropolitan regions there has actually been negligible change over the past year. The price trend is usually quite positive though. Prices seem to be rising month by month. They rose 0.8% between March and April after a rise of 2.1% between February and March.

Property prices on the Mediterranean also increased by 2.7% during the first quarter of 2016, compared to the last quarter of 2015. This is further evidence that the Spanish property market is stabilising while keeping property prices affordable.

The data from Tinsa also compared the property prices of today to the peak from 2007 and showed that property on the Costa del Sol is around 46% cheaper on average now compared to 2007. This represents an incredible “correction” of the market and is the most that prices of fallen over this period of time in any region.

As properties in the Costa del Sol are currently valued at higher than the national average this data would also seem to confirm suggestions that many of the properties on the market during the boom of 2007 were overpriced to some degree.

The market is far more sensible today, especially on the Costa del Sol. All of the things that made the area so appealing in the first place, such as the variety of properties for sale, the excellent infrastructure and location of the region, the climate, the healthy amount of expat-friendly locals with their rich culture, and the overall landscape of the area, are still there. Only this time the property is priced fairer and much steadier.

Any Brit looking to find an affordable property in Spain should take a look at the southern tip of the country to the areas with more affordable property prices. Take a look at areas such as Marbella and Málaga and see how property should be fairly priced.

Report Shows a Rising Demand by British buyers for Spanish Property.

The College of Property Registrars have released data that shows that there has been an increase of 81% in the number of British buying Spanish properties. This is a welcome return of foreign investors to the market.

Data was released earlier this year that showed that Brits were responsible for buying 21%, or one fifth, of the properties sold to foreign nationals in 2015. These statistics also show the strength of the recovery for British buying property in Spain.

British buyers in the Costa del Sol.

The amount of property transactions involving British buyers in 2015 was up to 9,956, a huge increase on the numbers for last year and more than twice the amount of French investors, who made up 9% of foreign transactions with 4,116 homes purchased in Spain last year.

The third largest group of buyers were the Germans, who purchased 7%, or 3,445, of the homes sold to foreign investors.

Demand from foreign buyers has risen by 11% in 2015 based on sales figures from 2104. The signs so far point to an even bigger rise in 2016.

Spanish Property expert Mark Stucklin says that the biggest story from last year is that there was an 81% rise in British demand for Spanish properties. The British are once again the dominant force in foreign demand, but they aren’t quite at the levels they were during the boom period and many northern Europeans are starting to move to Spain in search of a better lifestyle and warmer climate.

Stucklin also commented on what he feels made the market more desirable than in previous years. He said this was down to the low Spanish property prices, as prices have dropped roughly 40 to 50% from their peak before the crash, and the strength of the Euro compared to the pound making it very attractive to buy property in the Costa del Sol and Spain as a whole.