Average Spanish property values in June 2.3% higher than last year

Another month of gradual price increases delivers yet more confidence to the Spanish real estate sector…

Spanish property price data from valuation firm Tinsa reveals that the average selling price in June this year was 2.3 % higher than in the same month last year, extending to ten months the month-on-month trend of continuous house price increases…

While Tinsa’s data does not give the actual property price average for each region, it does show that the sharpest increase in prices remains centred around the coastal areas and big cities. For example, the average property price increase for regional capitals is 4.2 % – above the general average – and 2.4 % for properties near to the Mediterranean coastline.

When analysed as a first half 2017 average, home prices in Spain were 2.8 % higher than in the first half of 2016, with island property prices rising the sharpest over that period by 7.2 %.

These price increases are welcome precisely because they are steady and gradual. For more than 18 months now there have been no price shocks, no spikes, no crashes… just a consistent increase in demand and, with it, price.

These factors are providing no end of encouragement for economists and property experts, who now see an industry that has regular foreign investment, growing domestic interest, and a returning confidence among lenders and businesses.

Which is why building licenses have increased 2.4 % in the past year, actual sales were 23 % higher year-on-year as of May, and a 10.4 % increase in mortgage approvals was registered in April – a figure mirrored in the decrease in unemployment: in the past year, the jobless rate in Spain has fallen by 10.7 %.