Spanish property prices fell by 9.2% over 12 months to the end of July, according to the latest Spanish property price index published by Tinsa, one of Spain’s leading appraisal companies.
For what they are worth, the figures represent a slight improvement on the previous 4 months, when prices fell by more than 10% every month. It could be a sign that the slide in prices has bottomed out, though more months will have to pass before we can call a trend.
Once again, coastal areas were the hardest hit, thanks to the concentration of second homes in those areas. Average prices in coastal municipalities fell by 10.9%, and here a clear trend towards smaller price falls appears to be taking shape. Annualised price declines have been getting smaller every month since April, when they reached 13.5%.
The following chart shows the evolution of prices on the coast compared to the national index. It shows how prices on the coast rose much faster during the boom, and then fell more dramatically during the bust. That said, if Tinsa’s figures are correct, coastal property has still outperformed the national index over 8 years since 2001.
Next came big cities and provincial capitals, including Barcelona and Madrid, where prices dropped by 9.7% on average.
House prices in the suburbs fell by 9.6%, and by 8% in The Balearics and The Canaries.
The problem with Tinsa’s figures is that they bear little relation to the real world, where prices are down by at least 20%. Tinsa’s figures are based on subjective valuations, not market prices, so they are not an accurate market metric. They do, however, give one an idea of broad trends.