I’m not a big fan of the price data published by the valuation companies like Tinsa and Sociedad de Tasación because I suspect they are too subjective, and tend to reflect what their paymasters the banks want them to. However, they are worth keeping an eye on so long as you keep their faults in mind.
It’s interesting to see the latest house price index from Tinsa shows that, whilst the general index is down 4.3pc, and the coast a hefty 7.7pc, the Balearic and Canary Islands were up 4.2pc over 12 months to the end of July. There might actually be a grain of truth in that figure. I’ve done a lot of work on real estate prices in Ibiza for international funds this year, and my guess is that prices there will go up.
Not to gloss over the -7.7pc on the coast. However, that’s the average. I wouldn’t be surprised if prices in prime areas are stable or close to.
It also depends on the property. There is hardly any attractive new property for sale on the coast. What little there is sells well in my experience.