Spanish Property Market Picking Up

There has been good news this week for property sellers as the signs of property market recovery are filtering through to the national statistics office in Spain. The newly released statistics for February of this year show that new mortgage lending in Spain rose for the second month running, by 8.5%.

The news, of course, will be greeted with mixed emotions by buyers. On the one hand, it is great to see a more buoyant property market, but on the other it increases the urgency for anyone looking for a property to buy. More demand will undoubtedly strengthen vendors’ negotiating positions and knock on to price rises in the future.

Those looking for a property for sale in Tenerife will take heart that the mortgage market is starting to slowly loosen. The average amount borrowed rose to €135,113, a 9.3% increase on the previous month, but still 10.2% less than the year before. Overall, the total value of mortgages rose by 3.5%. The savings banks retain the largest share of the mortgage market (51.3%), followed by banks (37.9%) and other lenders (10.7%).

Needless to say, the property market in Spain has a long way to go before catching up with its previous highs, but it is inexorably moving in right direction. The average price of a home is Spain is currently equivalent to 2005 levels, so bargains are still available at all price levels.