Coastal and Island Property Prices Increase

Property prices increased in March
Property prices increased in March

According to data released by Tinsa today, the average price of finished housing remained stable throughout March showing a slight increase of 0.8% over the same month last year.

The areas of the “Mediterranean Coast” and the “Balearic and Canary Islands” show the most positive month with both areas showing an increase in prices of 4.3% during March.

The cumulative adjustment since the pre-crisis peak remained at -41%.

Only two areas recorded negative adjustment on the annual rate. “Capitals and Big Cities” and smaller towns grouped under “Other Municipalities” both recorded prices slightly below those of March 2015, with annual declines of 0.6% and 1.3%, respectively. The areas grouped under “Metropolitan Areas” recorded a healthy increase of 2.8%, year-on-year.

Quarter 1, 2016

When looking at the evolution of prices over the first quarter of the year, the overall pricing index is 2.2% higher than the end of Q4, 2015. The highest quarterly shift was recorded in the “Balearic and Canary Islands” where prices increased 5.4% over the previous quarter. Following closely behind was “Other Municipalities” with a 3.4% increase, and the “Mediterranean Coast” where prices of property for sale increased 3.1%.

Despite recent price increases there is still a huge gap between today’s prices and those of 2007. The average adjustment across the country is currently -41%. In the “Mediterranean Coast”, despite the recent onset of a recovery, is still showing the greatest difference over prices of eight years ago. Currently prices on the south coast are 46.5% lower than before the crisis. Other areas where the price difference is over 40% include “Capitals and Large Cities” and “Metropolitan Areas”, where prices are currently 45.1% and 43.8% below pre-crisis levels, respectively.

The lowest cumulative adjustment since the crisis is recorded in the “Balearic and Canary Islands” where prices are currently 29.1% down, while “Other Municipalities” are still 36.1% below those of 2007.

The Tinsa IMIE index is calculated on the annual change in the value of a m² of a property.

 

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