Increases in Spanish property prices are higher than EU average, report shows

There are regional variations across Spain, but nationally the country’s property price increase outstrips the EU average.

Across the European Union (EU), the average price of a property has risen by 4.4% in the 12 months up to and including the end of the second quarter of this year.

In other words, by June 30 a typical property across the EU was 4.4% more expensive than it was at the same point last year…

Curiously, this average is lower for Eurozone countries, ie, those countries that use the euro as their currency. The Eurozone registered an average annual increase in property prices of 3.8% over the same period.

However, on a country-by-country basis, things looked rather different. Spain, which does have the euro, enjoyed an average property price rise of 5.6% over that 12-month period, according to official Eurostat data.

This suggests that the Spanish property market is once again among the most dynamic on the continent, fuelled by interest both foreign and domestic, and standing alone as perhaps the only viable investment destination for those looking to invest in an overseas property that can be used as a second home and/or as a profitable investment step.

The EU data shows that house prices rose the sharpest in the Czech Republic – 13.3% – although as a second-home destination that market is pretty much non-existent. The Republic of Ireland saw home values rise 10.6% over that period, sparking some concern that another bubble could be on the cards there.

For Spain, the situation is far more measured. And in these post-recession, post boom-bust days, measured equals good. Last year, the Eurostat data showed that the average Spanish property value had risen by 2% on the preceding 12-month period, and this additional increase is safely within the boundaries of steady and stable.