If you’ve ever wondered “what is the average price of a house in Spain?” then you’ll be pleased to know that average house prices in Spain are on the rise, and have no finally returned to the pre-pandemic levels. During the second quarter of 2021, the average house price in Spain has increased to the same level it was for the same period in 2019. This was the period before the coronavirus pandemic had such a negative impact on the Spanish (and global) property market. Here is a full breakdown of the average house prices in Spain right now, and what this means both for those searching for a property on the Costa Del Sol as well as existing homeowners.
A Huge Rise Recorded
In the second quarter of 2021, the average national house price in Spain rose by 3.3%, when compared to the previous quarter. This was the biggest quarterly rise that the market has experienced since the end of 2019. These are the office figures, and were taken from the survey of the Housing Price Index (IPV) which is carried out and then published by the Spanish National Institute of Statistics (INE).
When releasing the report, the INE said: “The annual variation of the Housing Price Index in the second quarter of 2021 increased by 2.4 points since last quarter, meaning a rise of 3.3 percent, the highest level since the fourth quarter of 2019”
To break this down further, the price of newly built properties demonstrated a 6 percent year on year increase, whilst homes that have previously be owned demonstrated a 2.9 percent year on year increase.
What Do These Figures Mean?
In short, these figures demonstrate that average house prices in Spain have fully recovered to pre-pandemic levels. The pandemic has had other impacts on the property market, with the price of family homes that have their own outside space also having increased considerably: this is thought to have been influenced by the coronavirus lockdowns, which led families to want their own outdoor green space, so that should home confinement or remote working return, their lives will be much more comfortable.
During the first quarter of 2020 the effects of the pandemic had not yet been felt by the property market: at this point the market demonstrated a 3.2 year on year rise: however, from this point, the growth of the property market came almost to a stop, as homebuyers were thwarted from completing their purchases due to national ‘stay at home’ orders. In the last quarter of 2020, prices rose by just 1.5 percent and in the first quarter of 2021, the increase was only 0.9 percent year on year, the lowest rise since 2014, according to the INE data that is being used to report all of these figures.
In good news for home owners in the Costa del Sol, whilst the increase in property prices was a national one, and the average house price in Spain increased in all regions, the regions that recorded a particular rise were the ones that are associated with tourism. Housing prices rose by 6.4 percent in the Canary Islands and by 5.7 percent in the Balearics, although the greatest increase was registered in Melilla, with 6.7 percent.
Now that the Coronavirus crisis has waned, are you thinking of taking the plunge and moving to Spain? The region remains a wonderful place for Britons to live after Brexit! If you’re thinking of moving to Spain then why not get in touch with the team at Right Casa Estate agents who are perfectly placed to help you find your dream property on the Costa Del Sol.