House values in Spain increased by 2% in April but the country’s housing market is still seeing some significant differences between cities, coastal areas and island locations.
The latest data from appraisal company Tinsa shows that prices in big cities like Barcelona and Madrid were up 6.1% and in the Balearic and Canary Islands they were up 4% while along the Mediterranean coast they were up 1.3%.
While the housing market is undoubtedly recovering it is still a mixed outlook. Figures from the Land Registers Association showed prices were up 7.4% in the first quarter of the year and the Fomento index was up by 2.2% in the first quarter.
But the Idealista index, which covers resale asking prices, shows they were down by 0.7% in May and the index from the Notaires Association showed a fall of 1.3% in March.
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arcelona’s property market appears to be one of the most dynamic in Spain at the moment with the latest market report from agents Engel & Volkers showing that prices per square metre are up to €12,000 in the Zona Alta and Diagonal Mar districts.
‘Even though the level of construction has gone up, demand still significantly exceeds the availability of homes,’ said Oriol Canal, managing director of Engel & Volkers Market in Barcelona.
It also shows that international demand is rising and families from Russia, France, Bulgaria, Argentina and the United States are particularly looking for large, light modern apartments with sea views.
The firm is predicting further prices rises in Barcelona due to the high demand from overseas buyers. ‘Barcelona is a region with a healthy economy and excellent infrastructure, which offers a high quality of life. We predict that this year prices for high quality residential property in prime locations will rise by 9%,’ said Canal.
