Property prices across Spain have risen by 11.6% on average since the market bottomed out in February 2015. Not surprisingly, prices along the coastal areas in Spain have seen the most significant price rises, with 18.9% in the Balearic and Canary Islands, followed by a 14.8% rise in Mediterranean coastal areas.
According to a recent report by property valuation firm Tinsa, property prices along the Mediterranean coast have increased by up to 9.3% more than in metropolitan areas. Urban areas and the catch-all category of ‘other municipalities’ have seen prices grow by 9.2% and 2.6% respectively, confirming the longstanding allure of properties in Spanish coastal areas.
The Spanish property market has grown exponentially since 2015, with prices of residential properties located in regional capitals increasing by over 19.7%. In August, properties in Mediterranean coastal areas saw a price increase of 4.8%, with just 2.4% in metropolitan areas, and 0.4% in all the others.
While regional variations are to be expected in a country as diverse as Spain, a number of factors are contributing to the recovery. Unemployment rates fell by 5.92% to 3.18 million in August, and the Euribor, a the rate used to calculate most Spanish mortgage interest repayments remain at record lows, growing by approximately 0.01% to 0.169%.
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