Growing local and foreign demand boosted the Spanish property market in March by almost 20%, though the average price of property fell a fraction, reveal the latest figures from the Notaries’ Association.

There were 48,695 homes sales witnessed by Spanish notaries in March, an increase of 19.5% compared to the same time last year (+17.1% if seasonally adjusted).

The increase came exclusively from the resale market, up 20.5%, as new home sales fell 11.5%. Remember that homes sold off-plan do not count in the figures until construction is completed, and the property is delivered.

Apartment sales were up 20.5%, and single-family home sales up 15.6%.

The average price of residential property sold in March, measured in terms of Euro per square metre, fell 1.3% to 1,227 €/m2, driven by a decline in the price of single-family homes of -6.2%, whilst apartments remained unchanged. If you exclude subsidised housing, the average price of a flat sold in March rose by 0.3%.

Spanish Mortgage Lending In March

New residential Spanish mortgage lending rose 18% to 21,818, the average new loan value fell 5.9% to €122,907.

The notaries’ housing market figures are the most timely we have, and show that the recovery in sales continues unabated, though the average price shows little enthusiasm for getting off the ground. Bear in mind the average price disguises wide regional variations, with prices surging in hot markets like Barcelona and the Balearics, whilst continuing to decline in large parts of the Spanish interior.

A recent study by the appraisal company Euroval reveals that prices are now back to where they were in 2004, whilst sales are half what they were that year. There is still plenty of room for recovery, which is not to say it will continue.

Report from the notaries (pdf in Spanish)