The leading Spanish property valuation firm Tinsa published its latest batch of monthly data regarding the market value of housing across the country on Wednesday morning, reporting that in February 2020 the recovery in market prices of recent years continued to progress at a minimal rate.
A year-on-year increase of just 2.4 per cent was the 14th consecutive rise of under 5 per cent, while in Mediterranean coastal areas an upward movement of just 1.4 per cent since February 2019 is observed. At the same time, though the nationwide index actually fell during the month by 2 points to 1,527, while the index for the Mediterranean coast dropped by 3.1 per cent.
In consequence, the firm reports that the nationwide figure is just 16.6 per cent higher than when the market bottomed out in February 2015, but 33.1 per cent lower than at the height of the boom in late 2007.
The staggered nature of the recovery can be seen in the breakdown of the figures, which shows that in Spains regional capitals and other large cities market values have risen by 27 per cent in the last four years, while elsewhere there are increases of 27.5 per cent in the Balearic and Canary Islands, 15.2 along the Mediterranean coast and 12.9 per cent in metropolitan areas, but only 5.6 per cent in the catch-all category of other municipalities.
The February figures show the sharpest year-on-year increase in the Canaries and the Balearics at 7.6 per cent, while values rose by 3.3 per cent in regional capitals and other large cities, 0.9 per cent in metropolitan areas and 0.6 per cent in other municipalities.
The latest bulletin also contains the monthly market snapshot, in which Tinsa highlight reasons to expect upward or downward movements in the value of homes in Spain, summarizing the following indicators among others:
Sales figures: the latest monthly data (for December) show a 2.8 per cent year-on-year increase but an accumulated fall during 2019 of 2.7 per cent.
Building licences: the latest monthly data (also for December) show a 6.2 per cent year-on-year increase but a 5.5 per cent rise over the whole of last year.
Mortgages granted: despite the relatively sluggish sales figures, the latest monthly data (for December) show a 44.7 per cent year-on-year increase but only a 3.6 per cent rise during last year.
Source: Tinsa, March 2020