House prices in Spain are starting to rise again, according to new reports.
Two property portals have produced statistics showing the market is improving – which is welcome news for expats and second home owners looking to sell or remortgage their homes.
The news is not so good for expats and second home owners looking to buy, who will pay more for their home in the sun.
Property surveyors Tinsa say that average prices are increasing, but homes are still around 41% of their peak value recorded in 2007 before the market collapsed.
The biggest moves were in the Balearic and Canary Islands, which are favourite destinations for expats and holiday home owners.
Homes still valued way below 2007 peak
Prices were 5.4% in January compared to December 2015 and rose 3.2% year on year.
The below peak average is also less on the islands at around 29%.
Taking Spain as a whole, the average increase was 2.9% for the month and 1.1% for the year.
Tinsa also observed that although prices were holding up in the larger cities and Mediterranean costas, rural and small town home values were suffering.
“The market is showing some healthy signs of recovery but has a long way to go before reaching the price levels last seen in 2007,” said a Tinsa spokesman.
The other report, from Fotocasa, showed the value of secondhand homes showed a slight increase of 0.3% month-on-month and a similar decrease for the year.
Smaller home prices fall the most
The study goes on to show that average prices are 45% below their 2007 peak and that 12 of Spain’s autonomous 17 regions have reported home prices declining more than 40% since the peak.
Rioja prices fell the most, says the firm, by almost 55%, followed by Castille-La Mancha, Navarra, Aragon and Murcia, which all registered a fall between 50% and 55%.
The Canary Islands recorded the largest average price increase of 2.1%.
The firm confirms the most expensive place to live is the Basque country, with an average price of 2,730 euros per square metre.
“Smaller apartments have fallen in price the most,” said a Fotocasa spokesman. “They were among the most expensive homes when prices reached their peak in 2007 and cost an average 3,424 euros.”
