Real estate in Spain continues to be popular at a steady pace.
Property sale data for September 2018 and price data for the 2nd quarter of 2018 have been published by INE, the Spanish statistics institute. The annual variation of the price index (i.e. compared to the 2nd trimester of 2017) is 6.8%:
Broken down by type, newly constructed properties have risen by 5.7% in price and resale properties by 7.0% annually.
When compared to the previous quarter, we also see the upward sloping trend continuing:
A positive trend for the last trimester, with a slight tendency to increase “speed”. 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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2.6
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6.8
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New construction
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2.6
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5.7
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Resale properties
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2.6
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7.0
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Importantly, these price increases took place alongside an increased number of total sale operations, which is reassuring since it implies a broad market advance. The total purchase operations for September 2018 were 147,377, a 7.7% annual increase from 2017:
This is a welcome reduction from the frenetic increase of April 2018 of 20%, which implies sales are still growing but at a more sustainable pace. The slight increase of interest rates might explain this cooling down.
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:
Worthy of note is the fact that 18.7% of the sales are for newly constructed properties (first occupancy). This has been approximately steady throughout the year 2018.
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