Strong First Quarter for Spanish Property

Spanish property prices have risen well in the first quarter of 2018, continuing the property market recovery since the global financial crisis.

Average property prices across Spain rose by 3.8 per cent year-on-year in the first quarter of this year when compared to the first quarter of 2017 according to the latest report from property valuation company Tinsa.

There continues to be great variation over the country however, with winners and losers in the property growth market.

The strongest regions for property price growth included Madrid at 15.5 per cent, Navarra at 12.1 per cent, and the Balearic Islands at 10.5 per cent.

The strongest cities for property price growth were Madrid and Palma de Mallorca, recording growth of 17 per cent and 14.7 per cent respectively.

The majority of the Autonomous regions saw growth of around the national average, with the Costa Cálida area in Murcia for example showing growth of 3.5 per cent.

However, there were still regions that saw minimal decreases in the same period, such as Extremadura, Castilla-La Mancha, and Galicia. Proving that overseas property investors need to research their regions carefully before parting with their money for Spanish property.

Meanwhile, while separate figures issued by valuation company Sociedad de Tasación (ST) seem to agree generally with the Tinsa report, they were more conservative about the growth in certain regions during 2017.

The figure from ST reported a 4.3 per cent rise nationally during 2017, again with variation across the country.

The 4.3 per cent rise reported by ST over 2017 compares to a 2.5 per cent rise claimed by the company in 2016.

ST saw the strongest regions during 2017 as Catalunya at 8.7 per cent, the Balearic Islands at 7.5 per cent, and Madrid rising by 6.9 per cent.

The company did not see any regions decrease over last year but felt most of the country saw property values rise by less than 2 per cent over the period.

However, it seems that both valuation companies are in agreement that property prices in Spain are on the up.