July delight as Spanish property prices rise a further 3.7%

From coast to coast and city to city, there was a near-universal trend of rising home values in Spain in July.

The latest nationwide price index for Spanish property published by valuation firm Tinsa has revealed that average property values are 3.7% higher in July this year when compared to the same month a year ago…

While increasing monthly pricing data for Spanish property has become something of a norm these past couple of years, July’s data did show that the rising trend has begun to spread beyond the traditional high-price areas of Madrid, Barcelona, the islands and the Mediterranean, and into more rural areas that traditionally were immune to notable price fluctuations.

Tinsa finds that, in July, the regions that it terms “other municipalities” exhibited a 0.8% increase in average prices, which is the first significant uptick in values for nearly a decade.

And while this increase is still flatter than the +4% property price increases recorded along the Mediterranean coast, it is nevertheless encouraging in that it demonstrates how the country’s economic recovery is reaching more and more regions and people.

When extrapolated across the entire first seven months of the year, the Tinsa data shows that home values in the Costa del Sol were, at the end of July, an average of 5% higher than at the same stage in 2016.

Nationwide, the average selling price of a property in Spain is the same as it was in December 2003, and is likely to match the price increases seen in the years that followed. Albeit this time, experts are confident that there will be a merciful lack of a bubble and subsequent market deflation, the likes of which the industry experienced a decade ago.