Med property prices rising faster than Spanish average, data confirms

Mediterranean property in Spain has increased in value 4.4% over the past year, which is quite a bit above the national average.

Analysis of Spain’s property market by real estate appraisal firm Tinsa has revealed that homes located in and around the country’s Mediterranean resorts are increasing in value far faster than the national average…

Over the first quarter of the year, property prices along most parts of the Mediterranean increased by an average of 4.4% when compared to the same period last year, the Tinsa data has revealed.

In contrast, the national average over that period is a 1.9% increase, while in metropolitan regions there has been negligible change over the past 12 months. Generally, however, the price trend is positive, with month-by-month price increases rising from 0.8% from March to April, and 2.1% from February to March.

Home values on the Mediterranean have also increased 2.7% in the first quarter of 2016 when compared to the fourth and final quarter of 2015, which is further confirmation of the positive trend – one of stable and sustainable price increases in Spain’s most important resale real estate markets.

The Tinsa data also compared today’s property prices to the 2007 peak and found that the average home on the Costa del Sol is now 46.7% cheaper in 2016 than it was nine years ago, which is an extraordinary ‘correction’ of the market, and the highest price ‘fall’ over that period of any region.

Given that property prices in many parts of the Costa del Sol are currently above the national average, this data serves to confirm that many properties placed for sale in 2007 were overpriced by some margin.

Today, however, a more sensible, cautious market exists on the Costa del Sol. The attractions that made the region so popular in the first place – the variety of property styles, the excellent infrastructure and location, the superb climate, the balance of expat-friendly locals and rich cultural heritage, and the stunning landscape – remain, only now they are supported by a fairly priced, sober and steady property market.

So Brits in search of an affordable property in Spain would do well to turn their attentions to the southern tip of the country, where the names of Marbella, Torremolinos, Benalmádena and Málaga roll off the tongue, and home values increase at a pace that everybody – buyer and seller – is happy with.