Property prices in Spain’s islands and coastal areas are rising at rates above the national average, largely bolstered by second home buyers, while in the interior, they’re falling.
A monthly index released by property experts TINSA has revealed that property prices in Spain in May rose month-on-month by an average of 0.3 percent compared to April and are 4.8 percent more expensive year-on-year overall.
The range of price rises, however, depends hugely on where in the country the property is located. Spain’s islands and coastal areas, particularly the Mediterranean coast, were where house prices increased the most in the last month, while prices in inland Spain fell slightly.
According to Tinsa’s data, property is currently 4.8 percent more expensive than in May 2022, a slight decrease on year-on-year increases of more than 7 percent recorded throughout much of the second half of 2022.
Coastal areas and islands have seen the highest increases, largely because they are the main beneficiaries of tourism that attract potential second-home buyers to the area, while in large cities and metropolitan areas, prices are generally moderating.
Property prices grew by 1.4 percent in the Canary Islands and Balearic Islands and by 0.9 percent on the Mediterranean coast in May.
Compared to price levels in May 2022, housing in Spain’s archipelagos and coastal areas are 5.4 percent and 4.7 percent more expensive respectively than a year ago.
Across the rest of the country, prices continue to moderate, dipping slightly in some inland areas, although in metropolitan areas the increase in May was 6.3 percent in the year-on-year rate.
Prices in large cities rose by 4.3 percent compared to May 2022, while in inland Spain the increase was 3.3 percent, though the overall trend seems to be a downward one, as in January the year-on-year growth rate was over 7 percent.
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