Properties in Spain are increasingly popular compared to last year, with prices still rising despite Brexit upheaval.
Property sale data for November 2018 and price data for the 3rd quarter of 2018 have been published by INE, the Spanish statistics institute. The annual variation of the price index (i.e. compared to the 3rd trimester of 2017) is 7.2%:
Broken down by type, newly constructed properties have risen by 6.1% in price and resale properties by 7.3% annually.
When compared to the previous quarter, we see the upward sloping trend pulling back in absolute magnitude, but still positively increasing by 2.2% compared to 3rd trimester of 2017:
The table below summarises the data:
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Quarterly variation
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Annual variation
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Average index
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2.2
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7.2
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New construction
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2.0
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6.1
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Resale properties
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2.2
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7.3
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As always, we look for confirmation of these price increases by comparing the number of total sale operations - if it also increased year-on-year it reassures us by implying a broad market advance. If there were less sales overall, then this might indicate that the market is pausing and that the higher price average is temporary. The total purchase operations for November 2018 were 170,271, a 9.4% annual increase from November 2017. A healthy increase that justifies the opening line of this article!
Remember, this data is for the whole of Spain. The table below shows the breakdown by region, where you can see the Andalucia region has had intense activity:
An increase of 10.6% from November 2017, which is healthy. However, the accumulated yearly sales in Andalucia are tallying up a -5.9% decrease upto the end of Novemver 2018. We will keenly await the next batch of data to observe if this figure has gotten more negative (i.e. a more serious market slowdown), or less negative which would indicatethat the slowdown was temporary, possibly because of the reasons I mentioned in the last article, i.e. slight increase in interest rates etc.. For more data visit www.ine.es
In coclusion, we would like to see this trend continuing positively. The cooler pace is a welcome development as it would mean a more sustainable recovery and obviate the need for raising interest rates.
Thanks for reading and please contact us if you have any questions, or visit our Costa del Sol properties website for more statistics: hbcostadelsolproperties.com