Spanish house prices increased 3.6% during the year to January 2018 (3% inflation-adjusted) to €1,410 per square metre (sq. m), a sharp improvement from a meagre growth of 0.96% (-1.92% inflation-adjusted) during the same period last year, according to TINSA.
- In 2008, Spanish house prices fell 8.75% (-10.05% inflation-adjusted)
- In 2009, house prices fell 6.57% (-7.23% inflation-adjusted)
- In 2010, house prices fell 3.85% (-6.67% inflation-adjusted)
- In 2011, house prices fell 8.17% (-10.28% inflation-adjusted)
- In 2012, house prices fell 11.34% (-13.82% inflation-adjusted)
- In 2013, house prices fell 9.19% (-9.44% inflation-adjusted)
- In 2014, house prices fell 2.96% (-1.96% inflation-adjusted)
- In 2015, house prices fell 1.71% (-1.71% inflation-adjusted)
- In 2016, house prices increased slightly by 1.67% (0.1% inflation-adjusted)
- In 2017, the housing market recorded the highest growth in a decade, with prices rising by 4.47% (3.32% inflation-adjusted)
emand continues to rise strongly. In 2017, the total number of home sales in Spain increased 14.6% to 464,423 units from the previous year, according to the Instituto Nacional de Estadistica (INE). This rise in transactions was mainly driven by foreigners buying homes on the coast and in cities like Barcelona and on the Costa del Sol, one of the country’s most popular areas with overseas purchasers. Most foreign homebuyers are Britons, French, Germans, Belgians, Italians and Swedes.
Foreclosures fell by 34.2% to just 27,171 dwellings in 2017 from a year earlier, based on figures from the INE. Foreclosures dropped 13.3% for new dwellings and by 37.3% for existing dwellings.
The outlook for Spain’s housing market remains upbeat, with house sales expected to rise by between 10% and 15% to reach about 550,000 transactions this year, according to TINSA.
The Spanish economy grew by about 3.1% in 2017, from growth rates of 3.2% in both 2015 and 2016 and 1.4% in 2014. Despite the ongoing political crisis in Catalonia, the EU recently raised its 2018 GDP growth forecast for Spain from 2.5% to 2.6%.