Tinsa report 4.6 per cent rise in Spanish property prices in July

After 3 years of steady increases average market values have gone up by 10.6 per cent

Monday 13^th August saw the publication of the latest data related to residential property values compiled by leading valuation firm Tinsa, who report that in the month of July the on-going recovery in prices across the country continued in almost all categories, although the year-on–year increase was less significant than the one observed in June, which was the most positive for eleven years.

A rise of 4.3 per cent in the general index over the last twelve months means that the figure is now 10.6 per cent higher than when the market bottomed out in February 2015, although it is still 36.5 per cent lower than the peak reached during the boom. As for the breakdown of the July valuations, it can be seen that the sharpest rise these is again in the regional capitals and other large cities at 7.6 per cent, followed by rises of 4.6 per cent in metropolitan areas, 3.4 per cent in the Balearic and Canary Islands and 2.1 per cent in Mediterranean coastal areas. Only in the catch-all category of “other municipalities” is a slight decrease (of 0.5 per cent) reported.

The latest bulletin also contains the monthly “market snapshot”, in which Tinsa highlight reasons to expect upward or downward movements in the value of homes in Spain, summarizing the following indicators among others:

- Sales figures: the latest monthly data (for June) show a 1.8 per cent year-on-year increase, although the accumulated rise over the first half of the year is 11.3 per cent.

- Building licences: the latest monthly data (for May) show a 23.8 per cent year-on-year increase and a 23.8 per cent rise in the first five months of this year.

- Mortgages granted: the latest monthly data (for May) show a 7.4 per cent year-on-year increase and an 11.2 per cent rise in the first five months of 2018.

- Unemployment: the latest monthly data (for July) show a 6.02 per cent year-on-year decrease to 3.13 million.

- Euribor: the interest rate on which most mortgage repayments in Spain are calculated is currently at -0.180% (the average for the month of July), still very close to its lowest level ever.

The combination of all these factors appears to indicate that conditions continue to be right for demand to increase, placing upward pressure on market prices, and there is no apparent reason to expect that the trend of the last two years, which have seen a gradual recovery in the overall nationwide price increase despite significant regional variation, is about to be reversed.

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