March 7th, 2017
Property prices in Spain rose 1.8% year-on-year in February, according to valuation specialist, TINSA.
It marks the 11th monthly rise over the past year and the largest, which is 0.3% higher than in January 2017.
The biggest rise in average prices of finished housing (new and used) came in the Balearic and Canary Islands, where values rose 4.4% in the last year, followed by the Capitals and Large Cities category, which was up 3.3%.
Prices in Metropolitan Areas and in smaller towns (Rest Of municipalities), both rose 0.2% annually.
The only area to see a fall in prices was the Mediterranean Coast, which was down 0.3% in the last 12 months.
The report also included a market snapshot indicating the prospects for the market:
Sales figures: (December 2016) up 7.1% annually and completing a 13.9% rise for 2016
Building licences: (December 2016) down 3.5% annually, but up 28.9% for 2016
Website supply: (Quarter 4, 2016) down 1.4%
Mortgages granted: (December 2016) up 7.2% year-on-year and 14.8% in 2016.
Meanwhile, Spanish property website, Kyero.com, says that for the first time, growth in British enquiries for Spanish property have stalled for the first time in February, as buyers adopt a “wait and see” policy over Brexit.
Richard Speigal, Head of Research at Kyero.com, says, “We found the change most pronounced in the over 55 age group, who probably have the most to be concerned about. While Brexit is unlikely to impact property rights, mortgage lending or the mechanics of purchasing in Spain, the situation regarding healthcare and pensions needs urgent clarification.
“Nobody has any idea if British pensioners will receive a reciprocal healthcare arrangement in Spain post-Brexit, leaving many in limbo. The Health Select Committee has heard evidence on the issue but we’d like to see more vocal lobbying for early clarity from the government.
“To a lesser extent, pensions are also a worry. Will expats in receipt of a state pension continue to receive automatic uprating each year – or face a freeze like those in Canada? It’s hard to budget for a life abroad in the current climate.
“The Spanish property market continues its recovery, and seems unlikely to be derailed by Brexit. European buyers have been extraordinarily active in picking up the slack from nervous Brits – but it seems a shame to watch Germans getting first dibs on the sun beds, while Brits are waiting on Mrs May for the towels.
“Everybody understands negotiations are going to be complex, but these issues can be resolved quickly and unilaterally. We’d like to see the government take a position sooner rather than later.”
Posted on March 8th, 2017