If you follow the Realista blog regularly, you’ll know that the Spanish property market ended 2021 on a high. The sector was particularly busy on the Costa del Sol, where 91 properties changed hands every day last year.
But how would the market perform in 2022? The answers, at least for the first three months, come in a recent report revealing that market conditions continue as brisk.
House prices rise by 6.6% across the board
The latest Spanish Property Price Index (the Tinsa IMIE) for the first quarter of this year finds that house prices rose by 6.6% compared to the same period in 2021. In quarterly terms, the increase is 2.3%.
Tinsa points out that the average price increase in Q1 equals the growth seen in Q4 last year and asks if this balance is a sign of stabilization in the market. However, the report adds the caveat that the increase is still significant.
Regional changes in prices
Madrid stands at the top of the leader board for price hikes when it comes to autonomous regions in Spain. Real estate values in the region went up by 11.3% between January and March.
The Balearics and Andalusia didn’t quite make double-figure increases, but both still ranked near the top. The property went up by 8.4% on the islands of Mallorca, Menorca and Ibiza, and by 7.7% in Andalusia, home to the Costa del Sol.
Provincial price variations
Just 7 of the total 52 provinces in Spain saw price drops in Q1 this year and all were below 2%. At the other end of the scale, 14 saw property values go up by over 7%. They included Madrid, the Balearics and the Costa del Sol. The Index highlights the trio for their sustained upward trend.
Specifically, real estate prices in Madrid increased by 11.3%, the highest in the country. Those in the Balearics saw a rise of 8.4%, while properties on the Costa del Sol went up by 7.6%.
The latest uptick brought the average square metre price on the Costa del Sol to €1,816. The figure now stands at 28.9% below the peak price reached in Q1 2008.
Dynamic sales of property
The Index also looks at the rate of sales in different Spanish provinces. Almeria stands out for the volume of transactions in comparison to its supply of property. In the last quarter of 2021 (the latest available data), the province had a ratio of 36.2 sales per 1,000 properties, the highest in Spain.
In terms of sales rates, Costa del Sol leads the table. In Q4, the ratio was 40.8 per 1,000 properties, well ahead of the Spanish average (26). However, the national average has also seen strong growth and increased from 18.9 sales per 1,000 properties in a year.
Planning to buy on the Costa del Sol this year?
If you’re planning to buy property on the Costa del Sol in 2022, get in touch with our expert team. They’ll be more than happy to help you discover the right area and the property that suits you down to the ground.