Spanish Property Market Continues to Recover

The Spanish property market – a long term favourite for UK overseas property investors – is continuing recovery, albeit at a slow rate.

According to the latest data from property evaluation company Tinsa the average price per square metre of Spanish residential property nationally was up 0.9 per cent over the last year, reaching 1,361 euros.

The average national square metre price of property has risen year-on-year for eleven out of the last twelve months now, showing contiunuity in the recovery.

The recovery is still being led by the islands and cities. With the Canary and Balearic islands showing the best rise of 2.9 per cent, closely followed by the capitals and major cities up 2.7 per cent yuear-on-year.

Building licences showed an increase of over 25 per cent and property sales were up 17.7 per cent year on year.

Similarly, mortgages granted were up as well, showing a strong increase of 32 per cent over the previous year. This was no doubt helped by low cost credit with the Euribor rate on which most mortgage repayments in Spain are calculated currently standing at -0.095 per cent, a negative figure.

A further encouraging factor for the Spanish property market is the latest monthly figures for unemployment in Spain, which showed a year-on-year decrease of 9.4 per cent in January, showing the the wider economy is firmly back on track.

All figures indicate that the recovery in the Spanish property market is set to continue throughout 2017, and now could be the time for overseas property investors to get involved before the recovery gathers pace.