Spanish Property gets Hot for Summer
As Spain basks in the hottest summer for years, the country’s property market has registered a heatwave of its own.
Values in the major cities of Barcelona and Madrid have jumped by more than 6 per cent since January 2017, with similar but smaller rises along the Mediterranean coastline.
Overall, Spanish property prices have risen by 3.6 per cent in 2017, compared to 1.6 per cent for the same period in 2016.
“The cities of Madrid and Barcelona and the more traditional coastal areas are polarising the recovery,” said Jorge Ripoli of the national property research bureau Tinsa. The Balearic and Canary Islands also registered positive uplifts in value of just under 5 per cent.
Residential property across Spain is becoming more valuable as a revenue-producing asset, thanks to a new enthusiasm among tourists and locals for apartment accommodation. Foreign visitors using platforms such as Airbnb increased by one million in the first half of 2017, a third higher than in 2016 according to the National Statistics Institute.
“Spending by foreigners who stay in tourist apartments now represents close to a quarter of total accommodation expenses,” states the Institute. This equals €7.1 billion out of €37.2 billion spend so far in 2017.