The Tinsa IMIE General index, which reflects the evolution of the average value of finished housing (new and used) in Spain, registered a year on year increase of 6.5% in the month of December 2018, nine tenths more than in November.
In the whole of 2018, the average variation (the average growth for each of the 12 month periods) was 5.0%. Despite the fact that the average price in Spain has recovered 14% from the minimum recorded in February 2015, it is still 34.6% below the maximum of 2007.
The regional capitals and large cities (+8.7% year-on-year in December) and the archipelagos (+10.6%) where the main highlights in the December 2018 compared with December 2017. "The year has ended with a notable price increase with signs that this is slowly extending to areas that until now have been stable ", says Rafael Gil, director of the Tinsa Research Service.
When the overall results are analysed, it can be seen that the regional capitals and large cities have largely driven up the overall prices, with an average increase of 7.9% in 2018. This is practically double the increase registered in metropolitan areas (+3 , 6%), the Mediterranean peninsular coast (+4.2%) and the islands (+4.3%). In contrast, in the rest of the municipalities within the interior of the peninsula, the average growth in 2018 was a more discreet: 1.2%.
At the end of the year, the national recovery of prices had reached a level of 14.0% above the recorded minimum. Both the regional capitals and large cities and the island territories showed an average revaluation of more than 20% from their respective post-crisis minimums. The Mediterranean peninsular coast registered an accumulated increase of 18.1% and the metropolitan areas 10.9%. In the rest of the territory, the cumulative increase from the minimum levels did not reach 5%.
Despite the general trend of recovery of values, with greater or lesser intensity according to the area, the average fall in prices in Spain, from pre-crisis maximums, is 35%, the same as the main cities and municipalities of the interior of the peninsula. The gap since the peak of the cycle exceeds 40% in the metropolitan areas and the Mediterranean coast, while it is around 20% in the Balearic and Canary Islands.
Stan Dickens (FRICS) is a UK qualified Chartered Surveyor who has practiced in Spain and Portugal since 1989.