4 July 2016 – Expansión
Analysis by region / The price of tourist housing is thriving once again in many areas along the coast, including in the Balearic Islands, Canary Islands, Málaga, Cádiz, Alicante and Gerona. More than half of Spain’s beaches are experiencing clear recoveries in their property prices or are showing signs of recovery, with an increasingly active market, according to Tinsa; very few areas are still in decline.
The housing market has taken off with a bang, above all in the major cities. Nevertheless, certain other areas also stand out, in particular: the coasts, where 56% of the areas are now in recovery and where foreign demand and the limited stock in the prime areas has further encouraged increases in real estate prices. Specifically, and according to a recent report from the appraisal company Tinsa, 56.2% of the coast areas are now in a process of recovery, whilst prices have bottomed out in 28.1% of areas and only 15.8% are still experiencing price decreases.
In this way, the report highlights the Balearic and Canary Islands, which have several areas in “clear recovery”, followed by the Costa del Sol (Málaga) and the Costa de la Luz (Cádiz). In addition, there are significant improvements in Barcelona, Gerona and Alicante. In these areas, a good portion of the unsold housing stock has now been sold off, given that the number of transactions has shot up, and so too therefore has the granting of new permits, which have doubled. By contrast, prices in some parts of the Comunidad Valenciana, Murcia and Andalucía are still decreasing, as the markets there are saturated with unsold properties, which means it is still possible to find bargains relatively easily. The Cantabrian Coast has experienced a more moderate evolution. There are several keys that point to the prolongation of the rising trend. “We have been observing a moderate but stable increase in prices for several quarters now, foreign demand is rising sharply, above all along the coast, which means that the remaining unsold homes are now starting to run out in many areas”, said Beatriz Corredor, Director of Institutional Relations at the College of Property Registrars. (…).
Original story: Expansión (by Pablo Cerezal)
Translation: Carmel Drake