Following the review of our quarterly provincial reports last week, it’s time to take a look into the house price data we’ve collated over the past quarter. We use this to review how the Spanish housing market is faring and what kind of demand we’re seeing around our regions. We know our agents find this information really useful in helping their planning processes for the months ahead.
The state of the market
As per last quarter, we’re pleased to report that house prices in Spain have continued to increase throughout 2019, reaching a new median asking price of €275,000 for Q4 2019. This has been demonstrated by our own collated figures and the official index, with the latest year on year figures and quarterly trends showing an increase. This is great news as we head into the new year.
Let’s take a look at the provinces
Continuing the pattern for 2019, asking prices in Cadiz have risen still further in the last quarter. We’ve seen growth of 5.5% in Q4 and an impressive 24.9% over the entire year. Tarragona, some 650 miles away to the north-east, may be behind this in terms of growth, but still takes the second spot in the list, showing a rise of 3.1% for the quarter and 5.5% annually. Back in Andalusia, Granada, too, has seen growth this year, up 1.6% in the last three months and 7.8% for the year.
Turning our attention to the islands, Mallorca’s rise shows no signs of stopping, with price growth up 1.1% this quarter, 7.8% for the year. Meanwhile Ibiza bucks its trend of a 5% decrease in asking price over the year to achieve 1.6% growth in the last quarter. Could this be the turning point agents working here have been waiting for?
Drilling down further…
While it may be easier for more specific locations’ data to be skewed by the presence of one or more high value properties, it can still be useful to see what’s going on in these smaller areas and begin to build up a pattern of buyer behaviour – as long as this is read with some caution.
Top performer, country wide, is Puerto Banus, in Malaga province, showing growth of 7.3% in property asking prices. Santa Eulalia Del Rio on the east side of Ibiza has recorded 6.2% growth, going some way to explain the island’s change in fortunes this quarter. Meanwhile San Roque in popular Cadiz comes in third with 6.2% growth.
Alicante was the area that saw the greatest decrease in asking price. Cumbre Del Sol in the region has seen prices fall by 7.1% in the last three months, with the city of Madrid and Mallorca’s Port D’Andratx close behind in the list of fallers.
But what does it all mean?
Could we infer from the data that Ibiza’s star is back on the rise, or that Madrid is slowing down? It’s probably unwise to take data such as this completely to heart due to the nature of property market fluctuations, and the ease with which datasets can be skewed if the available housing stock is low in any given area.
That said, reviewing this data each month offers a useful insight and the ability to identify patterns that can be monitored over time. Are we seeing significant changes this quarter? Not necessarily, but with each quarter we’re able to put in place another piece of the jigsaw and see which direction the regional housing market is moving.
And all of this information has to be useful for our agents.
Don’t forget to check back next week for a rundown of the trends we’re seeing in terms of international buyers showing interest in Spanish property.