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Stigende huspriser på Costa del Sol
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House prices up by 0.4% on month in September

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Buying a property in Spain

If you are buying a property on the Costa del Sol or elsewhere in Spain, the following translation of the latest Tinsa statistics on price trends may be worth reading.

The housing market here on the Costa del Sol is still good and good homes especially in the towns of Malaga, Marbella, Fuengirola, Benalmadena, Estepona and Mijas are selling almost faster than they are coming on the market.

The saturation of the northern European housing markets does not seem to affect the desire to settle under the southern sun. Especially those who have the opportunity to work remotely choose to move to the Costa del Sol and work under a completely different lifestyle.

Good reading

  1. October, 2022
    The average price rose by 0.4 percentage points in September after falling in August. Year-on-year growth is 8.4%.
    The results for metropolitan areas stand out, with housing up 1.2% in the latest month.
    The groups “Capital cities and larger towns” and “Rest of the municipalities” lose strength compared to the variations recorded in the months before the summer.
    Housing in Spain has risen by an average of 32.6% since the post-crisis low and has accumulated a fall of 20.9% compared to the peak in 2007.
    Post title
    Madrid, 13 October 2022. -House prices rose by 0.4% month-on-month in September, partially correcting the eight-tenths fall seen in August, according to the Tinsa IMIE General and Large Markets index released today. In the annual perspective, the average value of housing in Spain is 8.4% higher than in September 2021.
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With the finalisation of the September data, the year-on-year change in the third quarter of the year is 8.6% compared to the 8.5% provisionally published on 30 September in the quarterly statistics of Tinsa IMIE Local Markets.

The macroeconomic context points to a moderation of the upward trend in house prices. “Housing demand, driven by accumulated savings and revaluation of space under confinement, remains active in 2022, although the continued rise in interest rates due to the ECB’s contractionary monetary policy and the associated expectations of economic slowdown make access to finance more difficult and act as braking elements,” says Cristina Arias, Director of Tinsa’s Research Department.

House prices have risen 32.6% since the lows of 2015 and are still 20.9% below the highs of 2007.

Metropolitan areas’ stand out in September with the highest monthly rate of increase (+1.2% compared to August). The other groups analysed had increases of between 0.3% and 0.5% in the monthly rate. “Capital cities and larger towns” (+0.3% on a monthly basis) and “Rest of local government” (+0.4%) lost momentum compared to the fluctuations of recent months (excluding August, which has a seasonal component).

In the annual breakdown, the “Metropolitan areas” and “Rest of the municipalities” are the groups with the largest price increases compared to September last year, with increases of 10% and 8.5% respectively, confirming the revaluation of land that has occurred after the period of curtailments. The group with a more moderate annual variation is the “Islands” (Balearic and Canary Islands), which after being the most active market since the beginning of the pandemic shows a stabilisation.

“The rise in financing costs is also affecting supply, which has already been constrained in the last year and a half by the high uncertainty of construction in an environment of delays in supply chains and rising construction costs,” notes Cristina Arias. “Supply constraints maintain upward pressure on house prices, which will still moderate their increases as demand eases.

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Development from the peaks and troughs after the crisis.

Since August 2015, when the average price in Spain reached its minimum after the financial crisis, the value has increased by 32.6%, with different intensities depending on the markets. The largest cumulative growth is in the ‘Capital cities and larger towns’ (+38.4%) and ‘Metropolitan areas’ (+34.2%), while growth in the smaller inland towns is limited to 20.1%.

The overall index continues to slowly close the gap with the 2007 peaks, with a cumulative decline of 20.9% since the peak of the previous cycle. Mediterranean coast” and “Rest of the municipalities” have decreased by about 30% compared to the peak in 2007/2008. In the group of island regions (Balearic and Canary Islands), housing is 12.4% below the peak.

Other indicators

Each month, the Tinsa IMIE index for general and large markets includes a selection of other relevant real estate and economic indicators to analyse the development and outlook for the housing sector.

See the history of IMIE and the various economic and property indicators at https://www.tinsa.es/wp-content/uploads/informes/2022/tinsa-imie-septiembre-2022.pdf.

This article is an electronic translation of the original text from Tinsa. The translation is a service to our Danish readers.