The price of new and used housing has seen eight consecutive months of year-on-year increases. Thus, in August the price of housing increased by 5.2% compared to the same month last year , as indicated by the general index of the statistics IMIE General and Large Markets of Tinsa, supported by the increases in the islands and small municipalities. For its part, the monthly rate registered an increase of 0.4%.
“Comparison with the period with the greatest falls, concentrated in the second half of the previous year, yields high inter-annual variation rates, which are part of an upward trend that is consolidated without setbacks month by month for the different geographical aggregates,” says Andrea de la Hoz, senior analyst at the Tinsa Research Department.
The Tinsa IMIE index -which divides the territory into five large areas that represent the main strata that make up the housing market- indicates that in all the groups analyzed, housing increased its average price in August compared to the same period of the previous year .
The islands have the largest increase in the last twelve months, up to 7.9% , followed by the group encompassed in Rest of municipalities -the smallest municipalities in the interior and the Atlantic coast-, where the price of new housing and used increased 7.1%.
The Mediterranean coast is also above the national average (5.2%), with a year-on-year increase of 6.1% . The most moderate variation rates compared to August 2020 correspond to metropolitan areas (4.9%) and capitals and large cities (3.8%).
3.3% more since the Covid
Considering the adjustments produced during 2020 and the subsequent progressive recovery, the average price in Spain is 3.3% higher than in March 2020, when the health crisis began . The groups that show the greatest upward journey almost a year and a half later are the smallest municipalities in the interior and the Atlantic coast, which show an increase of 4.5% compared to March 2020, and the capitals and large cities, where the annual difference reaches 4.3%.
“The general recovery is advancing at a more advanced rate than expected in a context of continued economic stimulus in Europe and low interest rates. The residential market is framed in a scenario of a sustained increase in prices, growing demand and limited supply “, explains De la Hoz.
21.7% from minimum
From the low recorded after the financial crisis of 2008, the price of housing in Spain has risen on average by 21.7% , remaining 30.2% below the highs of 2007. The islands are the group where the most the average value has increased from its minimum, 38.4%, followed by capitals and large cities (31.2%). For its part, the largest gap with respect to the 2007 highs is located on the Mediterranean coast and in metropolitan areas, with accumulated decreases of 40% and 37.4%, respectively.