Property prices present a clear indication of, not only the state of the Spanish property market, but also the state of the Spanish economy. By analysing the changes to the property market across the year, we gain a clear picture of what we expect the market to continue to look like for the year to come. And it’s good news for the Spanish property market! After a significant decline at the start of the coronavirus pandemic in 2020, property prices have recovered strongly in 2021. During Q3 of the year we saw a particularly significant upward incline, with the Spanish government (MITMA) reporting that, based on property valuations, prices had increased by an average of 2.6% across the country.
With that in mind, here is a comprehensive summary of the Spanish property market at the end of 2021:
The Data in Details
Now that the third quarter property data has been released, the following data has been issued by various Spanish bodies. They show that Spanish house prices have increased as follows:
- The National Institute of Statistics (INE) based on data from the Land Registry +4.2%
- The Spanish Land Registrars’ Association using their ‘repeat sale’ methodology +7.4%
- The Association of Spanish Notaries based on sales witnessed by its members +10.9%
- The Idealista.com (property portal) resale asking price index +4%
- The Tinsa index based on property valuations carried out by the company +8.3%
The Greatest Gains, By Region
Property price increases were at their most significant in regions which conventionally attract foreign investors. The Mediterranean coast saw property price increases of 12% and the Balearic and Canary Islands saw increases of 10%. The price rises were greatest in the Canaries and Madrid, where they increased by 15%. By contrast, in the rural region of Murcia, property prices only increased by 2%.
What Does This Mean For 2022?
At the start of 2021, it was near-impossible to expect the property market to recover so comprehensively, and no experts predicted such a stable market to be in place. Whilst prices began to plateau slightly at the end of Q3 2021, we are going into 2022 in an incredible strong position. It is forecast that the house price gains experienced in 2021 will continue into 2022, and that the Spanish property market will remain a stable, and sensible, investment.
Are you thinking of moving to Spain? Perhaps another cold, wet British winter is making you want to invest in the perfect holiday bolt hole for long, lazy Spanish summers? Then why not get in touch with our local property experts, who are perfectly placed to help you find the home of your dreams.