The residential property market consolidates the trend of price stabilisation that began in mid-2022, although with exceptions in areas with greater tourist activity.
The General index of the Tinsa IMIE General and Large Markets statistics for the month of April reflects a year-on-year increase of 3.2% after rising one tenth compared to the previous month. However, the Mediterranean Coast and Islands stand out with an upward price dynamic, which in the last month has resulted in an increase of 1% compared to the previous month.
“In April, residential prices have once again confirmed the pattern of stabilisation in employment centres, metropolitan areas and inland municipalities, while areas with a greater tourist component have reflected a new impulse,” explains Cristina Arias, director of the Studies Service from Tinsa.
Arias highlights that the stabilisation of prices in employment centres and metropolitan areas reflects the difficulty of access to housing due to local demand. “Even so, the concentration of demand in these areas combined with the shortage of short-term supply contributes to supporting prices. For their part, tourist areas suffer from price tensions that add investment demand and buyers of second residence,” she explains.
“In the first four months of the year, core inflation has continued to moderate and employment has continued to resist. All of this contributes to the recovery of the purchasing power of households, which maintains their solvency, and improves consumer confidence,” says Arias.
New and used housing in Spain has appreciated by 39.1% since the minimum recorded after the real estate crisis and is currently 18.2% cheaper than in December 2007, when it reached its maximum in the previous expansionary cycle.
The markets where the price index is closest to the levels reached in 2007/2008 are the island territories, where the accumulated fall is only 0.6% and the ‘Capitals and large cities’, where the difference is one 14.4%. At the opposite extreme are the inland markets of ‘Rest of municipalities’, with a 27.6% drop, and ‘Mediterranean coast’: 26.4%.
