Property prices on the islands are already close to highs
Statistics from IMIE General and Large Markets for May show that price movements for new and used homes in Spain are showing a slight increase as part of a stabilizing trend that has strengthened in recent months, but the island territories continue to rise.
The overall index increased by 0.5% between April and May, which leaves interannual fluctuations at 3.3%. Although in island territories Price dynamics slowed last month, housing 8% more expensive than a year ago and there’s only one here 0.1% under the maximum reached during the real estate bubble in March 2008, it is estimated Tinsa.
“In May, house prices registered a slight increase, which is still seen in the context of stabilization, especially in large countries.
The overall index increased by 0.5% between April and May, which leaves interannual fluctuations at 3.3%. Although in island territories Price dynamics slowed last month, housing 8% more expensive than a year ago and there’s only one here 0.1% under the maximum reached during the real estate bubble in March 2008, it is estimated Tinsa.
“In May, housing prices registered a slight increase, which continues to be due to stabilization, especially in large cities, capitals and metropolitan areas. Areas with a higher tourism component continue to lead growth, although showing slight moderation compared to previous months,” explains Christina Arias, Director of Tinsa Research Services.
Monthly variations in the analyzed groups were within 0.1% And 1.0%. ‘Mediterranean Coast’ And “Islands” moderate their dynamics, although they continue to record corresponding monthly growth, 0.7% and from 0.5%, respectively. A small impulse is observed in ‘Large cities and capitals” (0.4%) and stronger in internal municipalities (1%), which in both cases is offset by the slight decrease accumulated since December. In its turn, “Megacities” remains in stabilization(0.1% monthly).
Interannual option
Interannual fluctuations in May ranged from 2% And 8%. Areas with the greatest tourist component (islands and coast) retain the highest interannual variations (8% And 6.5%respectively), although they are moderate compared to those recorded in the previous month. “Capitals and major cities” place their interannual variability below average (2.2%), Bye Megacities and other municipalities grow in accordance with the average (3.2%).
The Director of Tinsa Research emphasizes that employment continued to develop positively in the first months of the year. Effective demand continues to support purchasing and selling activity.which, coupled with supply shortages in employment centers and tourist areas, is supporting housing prices.
“Although interest rates will remain high throughout the year, market expectations transition to expansionary monetary policy in the second half of 2024 this means a turning point it stimulates workactions of short-term and medium-term investment nature“, he notes.
Deviation from minimums and maximums
The overall index increased 39.7%from the recorded minimum in August 2015 after the financial crisis, emphasizing “Islands” as the group that is most overrated (47.1%), ahead “Capitals and large cities” (46.8%) and at a great distance from 24.1% that housing has become more expensive in small municipalities in the interior of the peninsula (“Other municipalities”).
The average cost of new and used housing in Spain is 17.8% below the peak of the 2007/2008 period.according to Tinsa estimates. island territories are approaching the highs of the real estate bubble, being just 0.1% below the level of March 2008.. “Capitals and major cities” This is the second group that most closely matches the standard boom (-14.1%).