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Spanish Property Market to Continue Sustainable Growth

The Spanish property market will continue to enjoy sustainable growth for the foreseeable future, if the latest figures from property valuation firm Tinsa are anything to go by.

According to the valuations firm, new-build and second-hand properties have seen their values increase year-on-year for the past 10 consecutive quarters., a sure sign of sustainable growth.

Typical hotspots such as Madrid and Catalunya are still leading the way, but property prices across the country have soared by 12.4 per cent on average since the plummet after the global financial crisis.

However, though average national property prices in Spain show sustainable growth, some areas are obviously growing faster than others.

In addition to the major cities of Madrid and Barcelona, the continuing tourist boom has seen Palma, San Sebastian, and Malaga enjoying a 30 per cent rise in average property prices since 2007.

The property price growth has been strong but stable and seems to be avoiding the fatal boom and bust cycle which lead to the meltdown some 12 years ago, instead showing all the signs of being sustainable.

Prices on a national level are still 34.1 per cent below the highest ever recorded in 2007.

Andalucia remains one of the biggest attractions investment wise, enjoying a strong yet sustainable 5.2 per cent year-on-year residential property price rise in the first quarter of 2019, slightly above the national average.

This is significantly led by the surge in interest in Malaga, home of the Costa del Sol, which registered an inter annual price increase of 10.6 per cent at an average house price of €1,635 per square metre.

It seems that Malaga and the wider Costa del Sol is strongly back on the radar of overseas property investors. This area of Spain has long been a favourite of the British investor, and that also seems very sustainable.

 

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