The Mediterranean Coast was hit incredibly hard by Spain’s property crisis but now seems to be on the road to recovery after prices increased by 1.8% during the first six months of 2015.
The statistics were released by Tinsa, a leading spanish valuations company, and show coastal property prices bucking the trend with prices dropping nationally by 1% from January to June. However, the coasts weren’t the only areas to register price rises and the Balearic and Canary Islands recorded an impressive 4.4% increase in prices for the first half of the year.
All of the other Tinsa groupings showed price falls. Prices were down most in the smallest municipalities where they decreased by 5.5%, Metropolitan areas saw prices fall by 4.9% and Capitals and Major Cities registered a 2.6% decrease.
The Mediterranean Coast is still the area in which prices have fallen most since their peak in 2007. Prices are almost half of what they were then and have racked up a 48.6% peak to present decrease.
Positive signs have become increasingly evident though on the coasts with new development beginning to spring up again and localised recoveries acting as pre-warnings that the situation was improving.
Demand has started rising again, confidence is back and, although it may be a while before we see a wholescale return of Spanish national buyers to the second home market, there are signs that they are re-entering the market with the current scale of price discounts providing a significant allure, particularly as it now seems to be a matter of time before such bargains disappear.
Main image: Artist’s impression of a property in Campoamor on the Costa Blanca, Valencian Community ©Patrimi Resorts S.L.