Property prices have risen by 5.2% since summer 2020 and by 21.7% since the financial crisis

Tinsa's general housing price index reveals that apartments added up 5.2% last month compared to the price fall that began last summer due to the pandemic. In August, with a rise of 0.4%, new and used housing maintained a trend of moderate price growth.

The general index of Tinsa's IMIE General and Large Markets statistics released today shows a year-on-year increase of 5.2% in house prices in August and a month-on-month rise of 0.4%. The biggest differences compared to a year ago were in the islands (7.9%) and in inland and smaller municipalities (7.1%). Compared to the previous quarter, housing rose by 3.3% and the largest increases since then are witnessed in small inland municipalities (4.5%) and in capitals and large cities (4.3%).


"The comparison with the period of greatest falls, concentrated in the second half of the previous year, shows high year-on-year rates of change, which are part of an upward trend," said Andrea de la Hoz, senior analyst at Tinsa's Research Department.

Considering the adjustments that occurred during 2020 and the subsequent gradual recovery, the average property price in Spain is 3.3% higher than in March 2020, when the pandemic began. The groups showing the greatest upward trajectory almost a year and a half later are the smaller municipalities of the interior and the Atlantic coast, which show an increase of 4.5% compared to March 2020, and the capitals and large cities, where the annual difference reaches 4.3%.

"The overall recovery is proceeding at a faster pace than expected against a backdrop of continued economic stimulus in Europe and low interest rates. The residential market is framed in a scenario of sustained price increases, growing demand and limited supply," continues Andrea de la Hoz.

In year-on-year terms, the biggest increases in August were in the islands (+7.9%) and in the 'Rest of municipalities' group (+7.1%). The Mediterranean coast was also above the national average of 5.2%, with a year-on-year increase of 6.1%. The most moderate rates of change with respect to August 2020 are witnessed in the metropolitan areas (+4.9%) and capitals and large cities (+3.8%).

"In the short term of the monthly rate, the islands are the group that reflects the most obvious increase in prices (+4.2% monthly). The rest showed variations or slight decreases. This is the case of the increase of 1.1% per month in the Rest of municipalities group or the +0.5% in capitals and large provinces, which, explains this expert, "moderates its growth with respect to previous months". In metropolitan areas, the average price fell by 1.6 % between July and August and by 0.6 % on the Mediterranean coast, which remains practically stable with respect to the previous month.

Housing has increased in price on average in Spain by 21.7% since the minimum recorded after the financial crisis of 2008, while remaining 30.2% below the highs of 2007, the report continues. The growth has been more pronounced in the islands, where the average price has increased by 38.4%, followed by the capitals and large cities (+31.2%). At the other extreme, the 'Rest of municipalities' group has barely increased in value by 10.8% since its lows.


The biggest gap with respect to the 2007 highs is located on the Mediterranean coast and in metropolitan areas, with accumulated declines of 40% and 37.4%, respectively. On the other hand, the Balearic and Canary Islands stand out with the smallest cumulative fall since the highs: 9.4%.

Source: https://www.expansion.com/inmobiliario/viviendas/2021/09/03/6131eea8e5fdeac66d8b4666.html

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