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Date Published: 06/09/2021
ARCHIVED - House prices in Spain increase 5.2% in August
Both new and used properties have seen a price boost over eight consecutive months in Spain
The property market in Spain, as in the rest of the world, took a nosedive during the coronavirus pandemic, but the sector certainly appears to be enjoying a recovery in 2021, as house prices in August increased by 5.2 per cent compared to the same month last year – that’s eight consecutive months of rising values. According to the latest data released by Tinsa, the biggest hike was registered in the islands and smaller municipalities.
The Tinsa IMIE index, which groups Spain into five large areas for the purpose of analysing house prices, indicates that the islands have seen the largest increase in the last twelve months, up by 7.9%, followed by the group encompassed in ‘rest of municipalities’, which represents the smallest towns, where the price of housing grew by 7.1%.
The Mediterranean coast is also above the national average with a year-on-year increase of 6.1%. Interestingly, Spain’s larger cities showed the least amount of growth in prices at just 3.8%.
The general recovery in the property market is exceeding all expectations, according to Tinsa, due to low interest rates, growing demand and limited supply. The average house price in Spain is now 3.3% higher than in March 2020, when the Covid crisis first began, with the smallest municipalities showing an increase of 4.5% compared to the start of the pandemic.
Since the financial crisis of 2008, the price of housing in Spain has risen by an average of 21.7%, but it is still a substantial 30.2% lower that the dizzying highs of pre-recession 2007. In fact, the Mediterranean coast has experienced a drop of 40% in the past fourteen years.
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