September proved to be a valuable month for Spanish property prices; Spain’s recovery plan continues to be on the right tracks with the average property price increase of 4.8%.
According to the valuation company Tinsa, property prices gained in all sectors with 7.3% in larger cities and capitals and a fantastic 4.7% on the coastal areas.
Albeit the price of property is still considerably lower than the boom time at 35.7% lower, the prices have increased by 12.1% since the global crash. This is great news for people looking to invest in property in Spain or searching for your retirement home or holiday home in Spain. In just over 3 years the property prices in coastal regions have increased by 15.7% giving great news for the investor.
This year 2018 has yet again seen record numbers of tourists flock to the Costa del Sol aiding the property recovery and showing investors and overseas buyers which locations to take advantage of on the coast. Marbella and surrounding areas has been a mecca for investors due to the hugely popular rental market. These areas can only continue to benefit in all aspects from tourism to the increase in property prices and rental prices.
Other news from the valuation firm that shows the extent and the solidity of the property recovery and economy in general in Spain is that property sales has risen by 18”% year in year. New off plan building licenses that have proves to difficult to get or even pass in previous years have grown by 46.2% year on year, this is a remarkable figure and again adds to the strong investment market for buyers of off plan properties in the coastal areas surrounding Marbella. Final figures from Tinsa also show that mortgage application that have been successful have also risen by 17% year on year showing that banks in Spain are becoming stronger and more satisfied to lend property buyers money again.
Unemployment in Spain has also decreased again year on year by almost 6.1%.
After reviewing the data provided by Tinsa, we have established that the recovery of the Spanish property market shows no sign at all of slowing down. We can confirm that we have a strong enough demand for properties in the off plan new build sector due to second hand older properties drying up, with property prices still on the rise but at more of a sensible rate than pre boom we can still see confidence from buyers and investors.