Property prices remained stable in April
The price of residential property in Spain has remained stable through April and registered an increase of 0.1% year-on-year, according to House Price Index Data released today by Tinsa.
In February the annual increase was recorded at 2.7% and in March prices grew 0.8%, yet still the market remains positive with the average value increase between January and April showing positive growth of 1.9%, compared to the same period in 2015 when prices actually fell by 0.4%.
From the peak prices of 2007 the cumulative decline remains at 40.1%.
Winners and Losers
The data released by Tinsa shows that it wasn’t all good news across Spain. Mediterranean Coastal towns were the only group to see an increase in the average price of property with a gain of 4.4%.
Prices in Metropolitan Areas remained stable with zero fluctuation but Capitals and Large Cities saw prices fall by 0.2%. The Canary and Balearic Islands both saw prices fall with a decline of 0.4%.
Sales and Construction
Confirming data released by the INE, Tinsa’s data also highlighted the increase in new development and property sales on the annual variation.
The number of new constructions in February showed an increase of 34.8% when compared to the same period last year, with 5,663 building licences issued. On the monthly variation the increase over January was 14.5% when there were 4,943 licences issued.
The number of property sales (including new and used property) increased 16.8% over the same period in the previous year, up to 31,925 transactions. Compared to the previous month there was a slight slowdown with 2,846 fewer transactions, a decline of 8.2%.
Mortgages
Reflecting the growth in the number of property sales, the number of new mortgages issued in February also increased.
The inter-annual variation showed an increase of 15.9%, reaching 24,887 new mortgages in February 2016, compared to 23,275 in the previous month. This represented an increase for January through February of 13.3% when compared to the same period in the previous year.
