Spanish house prices up 4pc in November but falter in Catalonia

Monthly house price change by area, year-on-year. Source: Tinsa

Property prices (new-build and resale) went up by 4% in November compared to the previous month, 0.3% less than in October. Prices are still 38.9% below their 2007 peak, according to the latest Tinsa IMIE Property Index.

Between January and November property prices rose by 4.1%, compared to the 1.8% increase over the same period in 2016.

The highest year-on-year increases registered in November were in the Balearics and Canaries (up 6.8%) and in provincial capitals and large cities, up 5.9% compared to November 2016.

“The property market continues on a positive note with the main trend being moderate price growth,” said Jorge Ripoll, director of Tinsa Research Services. He also highlighted the fact that price rises in Catalonia came to a halt in November because of the political situation and in anticipation of the elections on 21st December.

The data shows a marked slow-down in property price increases in Catalonia. While they went up by 6.5% to October, the accumulated increase had dropped by November to half (3.3%). Analysts believe that what happens over the next few weeks in Catalonia will determine whether this is a trend or merely a one-off occurrence.

As well as going up in provincial capitals, large cities and in the Balearics and Canaries, prices also went up year-on-year in smaller towns and cities (2.6% in November), in urban areas (1.3%) and on the Mediterranean coast (1.1%).

Spanish house prices peak-to-present

According to the Tinsa report, average prices in Spain in November were 38.9% below their 2007 peak. Adjustment is higher than the national average on the Mediterranean coast (47.6% below), in urban areas (43.4% below) and in provincial capitals and large cities (40.8% below).

In contrast, the least difference between current prices and those in 2007 can be seen in small cities where adjustment comes to 35.8% and in the Balearics and Canaries with a 25.8% difference.

About SPI News Feed

SPI News Feed provides general news about the Spanish property market and related articles translated from the Spanish press. For more in depth news, analysis, and opinion, see Mark Stücklin's blog.

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