The Spanish residential property market has undergone a period of consolidated recovery over the past twelve months. Property prices across the country are showing positive upward trends and many recent reports are also pointing to double-digit growth in sales figures, mortgage activity and construction.
According to a recent report published by the EU Statistics unit Eurostat, property prices in Spain have now risen for eight quarters in a row. The latest data found that while the average price of housing within the Eurozone has risen by 3% during the 12 months ending in the first quarter of 2016, property prices in Spain have increased by a rosy 6.3%.
The increase in price in the Eurozone more generally is the sharpest rise since 2008, and the rise in Spanish property prices is the highest since before the property bubble burst in the third quarter of 2007. The positive data marks the eighth consecutive quarterly increase after six years of falling value. Following post-recession price drops of up to 50% in some areas around the country and 6 years of falling value, residential property is now worth 32% less than eight and a half years ago. There are therefore still, while stocks last, a number of good quality properties available along the Costa del Sol at significantly reduced properties.
Spain's General Council of Notaries echoes the positive news in another report, further confirming a sustained period of growth and recovery within the country's housing market. Andalucia saw a 16.2% increase in property sales transactions in the first quarter of 2016, and the highest volume of sales in the country, with over 19,000 transactions and a median price of €1,200 per square metre. Home sales were also up 19% nationwide compared to the same period last year, with double-digit growth in most autonomous Spanish regions.
Finally, the once suffering construction industry in Spain has also been rejuvenated of late, reporting a year-on-year growth of 57% in the number of building licenses granted during the first quarter of 2016. According to the Ministry of Development a total of 16,782 new building licenses were approved, the highest figure since 2011.