New data reveals 1.8% Spanish property price increase in February

Spain’s strong property market has recorded price growth, mortgage growth and helped to support job growth these past few years.

Latest data from valuation company Tinsa has revealed that the average Spanish property price rose 1.8% in February compared to the same month in 2016.

Of the 11 monthly price increases recorded over the past 12 months, Tinsa states that this is the strongest year-on-year rise observed, and points to a continuation of a trend first identified in late 2014…

By region, the steepest increase in property prices in Spain in February was recorded in the Balearics, where the average home value rose 4.4%. Following closely behind on 4% was property on the Canary Islands.

That these two markets lead the way this time of year is hardly surprising. The Canaries in particular are a year-round destination, so during winter, tourism and interest in property on the islands remains stronger than on the mainland due to the warmer winter climate found on Tenerife, Lanzarote and Fuerteventura.

For the Balearic islands, while the climate in winter is roughly similar to that found in southern Spain, the fact that housebuilding has been more restricted on these relatively small – and always popular – islands has served to push up prices above the average.

On the mainland, regional capitals – including the Costa del Sol’s Málaga – averaged property price increases of 3% in February, while for Mediterranean coastal regions there has been an average increase of 0.9% in property prices since the turn of the year.

Other data published by Tinsa offers a broad snapshot on the Spanish property market’s trends, including a 28.9% increase in the issuance of building licences in 2016 compared to the year previously, with mortgage approvals rising 14.8% over that same time frame.

Unemployment in 2016 fell by 9.7%, Tinsa data shows, which has helped to drive the 13.8% increase in home transactions recorded last year when compared to 2015 figures.