Over a year since Covid-19 arrived and Spain entered a lockdown, the real estate market appears to be back on track. Figures just released by Tinsa for Q2 show that house prices went up by 2% in the year. The increase marks the return to stability for the Spanish property market and could signal the start of general and progressive recovery.
Tinsa’s Quarterly Local Market Index (IMIE) for Q2 shows a 2% increase in prices in Spain generally. The rise brings the average square metre price to €1,421 for new and resale property.
The average for Q2 takes prices to 18.7% above their lowest ever (February 2015). However, values on the Spanish property market generally still remain 30.6% below their highest ever (December 2007).
Highest regional price hikes on the islands
The Balearic and Canary Islands are no strangers to busy property markets – they tend to experience higher price rises than the rest of Spain. And Q2 is no exception. The Balearics saw the biggest jump – real estate went up by 8.2% on the islands between April and June.
In the Canaries, the increase was slightly lower (5.7%), but it indicates the high demand for property in this part of Spain.
In other popular places with foreigners buying in Spain, increases were more moderate. In Andalucia, home to the Costa del Sol, Costa de la Luz and Costa de Almeria, prices rose by 2.1%. The Comunidad Valenciana that includes the Costa Blanca saw a 1.8% increase.
Above average price hike for Costa del Sol property
In provincial terms, many saw price rises well ahead of the national average. The province with the highest increase in the country was A Coruña in Galicia in Northwest Spain where properties increased in value by 8.3%. Hot on its heels was Palma de Mallorca with an 8.2% hike.
Coastal provinces fared better generally than those inland and several posted price rises of over 5% in the year to Q2. Malaga is a case in point – on the Costa del Sol, real estate values went up by 5.4% to reach an average of €1,703 per square metre, the most expensive in Andalucia.
Even higher increases in Malaga city prices
The capital of the Costa del Sol continued to set the trend for city prices on the Spanish property market. In Malaga, Tinsa figures show that property values increased by 6.3% in year-on-year terms. In Q2 this year, a square metre of Malaga real estate had an average value of €1,806.
First on the blocks to recovery
The Tinsa quarterly data doesn’t include other municipalities on the Costa del Sol such as Marbella, Estepona and Benahavis. However, in April this year, the valuations company did highlight the Costa del Sol as a major focal point for recovery within the Spanish property market.
“Malaga and the Costa del Sol are positioned as the property markets that will experience fast recovery as soon as the health situation gets back to normal,” said the report, published in late April.
At Realista, we are already experiencing this recovery as many buyers return to a market that is, in our opinion, second to none. As Tinsa says, “its excellent climate and location plus the quality of life make it a destination that’s compatible with the rise in working from home, perfect for Spanish buyers looking for terraces and gardens and for the foreign investors for a second home.”
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