Despite the combined impact of Covid and Brexit property asking prices have actually risen in certain parts of Spain over the last year, according to the leading property portal Idealista.
Idealista recently released data showing that coastal properties in the Balaerics, Costa del Sol and Costa Blanca have all posted positive price increases over the last 12 months of 4.4%, 3.1% and 2.6% respectively versus April 2020 figures.
Whilst asking prices have also risen by 2.3% in the Costa Maresme area of Barcelona, by 2.2% on the Costa de la Luz and by 1% along the Valencian coast.
Post-Pandemic Price Rises Confound Observers
These increases have certainly confounded the expectations of many industry observers who were fully expecting to see a contraction in house prices across Spain during the course of 2021.
However, whilst the sun has been shining on second homeowners in certain regions, other parts of coastal southern Spain have recorded a drop in asking prices over the same period, falling by 6.5% on the Costa Tropical, 5% in Almeria and 1.6% Whilst also decreasing by 4.6% in the Canary Islands.
Property Prices Rising Worldwide
Some industry observers have suggested that the stats reflect a trend fuelled by the pandemic that favours a shift in demand away from urban areas in Spain towards rural and coastal properties. But as yet, the data isn’t really sufficient to draw any concrete conclusions, whilst asking prices are also obviously not a precise indicator of actual sales values.
These rising prices are also possibly part of a broader, worldwide increase in real estate values – a trend which has been flagged up by numerous leading media outlets such as The Economist and The Wall Street Journal.
Both of which noted as far back as March that property prices have been on the rise in developed countries around the world over the last 14 months, despite the pandemic, driven largely by low interest rates.
These price rises have in turn sparked concern amongst some economists about possible inflationary pressures and subsequent interest rate rises, with Reuters recently reporting about growing fears of a new European property bubble.
Either way, the news will at least for now be welcomed by many British owners of second homes in Spain as it provides some reassurance that their properties may not now fall in value as was expected by many at the tail end of 2020.