The statistics from the Spanish property Registrars for the third quarter of 2015 show property prices as having risen by 6.6% year-on-year. The recent increase in prices now puts the peak-to-present decrease at 28% according to the Registrar’s data.
The methodology used to calculate the change in prices means that only the price of properties which are considered as part of the “active market” are taken into account. In other words, the statistics judge what active buyers are prepared to pay for properties with demand while properties with no demand are effectively excluded.
Graph showing year-on-year change in Spanish property prices for each quarter from Q1 1995 – Q3 2015
As such, the data will measure the price change for properties located in Spain’s major cities, its islands and Mediterranean Coast as this is where the majority of the demand is concentrated at present. The results therefore corroborate the Tinsa data which has shown positive price change in all three of these areas over the last year.
However, even within these three parts of Spain there will be large differences in price performance on an area-by-area basis with parts of the Mediterranean Coast still stagnant while others, such as prime districts of Orihuela Costa, benefit from the increase in demand and prices.
This in turn demonstrates the importance of using a knowledgable estate agent who understands the dynamics of the local property market and can reliably advise on where best to purchase in order to take advantage of future price increases and continued high levels of demand were one to want let out or sell the property.
Main image: A photo of the La Floresta Sur development on the Costa del Sol, Andalucia ©Taylor Wimpey España