Spanish property market on the up
By Roxanne James

Property Prices on the Up in Spain

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According to reports from two real estate firms, the Spanish property market is showing significant signs of improvement.

Spanish property valuation experts Tinsa say that average prices are increasing, but homes are still around 41% of their peak value recorded in 2007 before the market collapsed.

The biggest moves were in the Balearic and Canary Islands, among the most popular investment destinations holiday home owners.

Prices were 5.4% in January compared to December 2015, recording an increase of 3.2% year on year.

Taking Spain as a whole, the average increase was 2.9% for the month and 1.1% for the year.

Tinsa also observed that although prices were holding up in the larger cities and coastal resorts, rural and small town home values were suffering.

"The market is showing some healthy signs of recovery but has a long way to go before reaching the price levels last seen in 2007," said a Tinsa spokesman.

The other report, from realtors Fotocasa, showed the value of resale homes showed a slight increase of 0.3% month-on-month and a similar decrease for the year.

The study goes on to show that average prices are 45% below their 2007 peak and that 12 of Spain's autonomous 17 regions have reported home prices declining more than 40% since the peak.

Rioja prices fell the most, says the firm, by almost 55%, followed by Castille-La Mancha, Navarra, Aragon and Murcia, which all registered a fall between 50% and 55%.

The Canary Islands recorded the largest average price increase of 2.1%.

The firm confirms the most expensive place to live is the Basque country, with an average price of €2,730 per square metre.

"Smaller apartments have fallen in price the most," said a Fotocasa spokesman. "They were among the most expensive homes when prices reached their peak in 2007 and cost an average €3,424/m²".

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