ARCHIVED - Tinsa report 5 per cent increase in Mediterranean property values in just one month!
House prices rising on the Costas and in the islands while urban homes stagnate
The latest monthly data published by leading Spanish property valuation firm Tinsa report that average market values of homes in this country were 1.3 per cent higher in May 2021 than in the same month last year, despite a slowdown in the categories of “capitals and large cities” and “metropolitan areas”, with much of the increase due to the continuing good health of the markets in the islands and along the Mediterranean coast.
In recent months property in coastal areas has become more highly valued and the latest bulletin Tinsa observe a 3.2 per cent rise in Mediterranean coastal areas over the last year and an increase of 4.6 per cent in the Balearic and Canary Islands.
At the same time, the figures show a rise of 5.3 per cent in Mediterranean property values in the month of May alone. In Mediterranean areas the Tinsa valuation index is now at its highest April level since 2013, while in the islands it is necessary to go back to 2010 to find similar figures!
The latest bulletin also contains the monthly “market snapshot”, in which Tinsa highlight reasons to expect upward or downward movements in the value of homes in Spain, summarizing the following indicators among others and clearly illustrating how almost all of them have been distorted by the pandemic:
- Sales figures: the latest monthly data (for March) show a 36 per cent year-on-year increase in comparison and the highest monthly total since July 2019.
- Building licences: the latest monthly data (also for March) show a 34.4 per cent year-on-year increase.
- Mortgages registered: the latest monthly data for March show a 39.8 per cent year-on-year increase and the highest monthly total since before the outbreak of the pandemic.
- Unemployment: the latest monthly data (for May) show a 2 per cent decrease during the last 12 months and the sharpest monthly decrease on record.
- Euribor: the interest rate on which most mortgage repayments in Spain are calculated was -0.481 per cent during May, still very close to its record low although slightly higher than in April.
Seldom can such positive data have been compiled to indicate a bright short-term future for the market, particularly in Mediterranean coastal areas and the islands!