According to Spain’s Statistical Office house prices are rising in the Balearics and along the coasts of Malaga and Alicante.
The increase in prices is being fuelled by foreign buyers from Britain, Belgium and Scandinavia picking up properties priced well below the highs seen in 2007/2008.
Looking at reports filed for April of this year the amount of mortgages granted by banks has risen 34% on the same period last year.
Madrid remains a hot market with banks issuing 6,018 mortgages, while Andalucía came in second place with 5,154 and Cataluña third with 4,700 mortgages sold.
The price of the average mortgage being sold also went up by 9.1% to 123,256€ with the bank’s exposure increasing 46.5% to 3.54€ billion.
For now, at least the upward trend looks set to continue especially in Madrid and sought after beach locations providing, of course, we do not experience the financial meltdown of 2008 again.
The good news is banks are starting to lend again and with new financial regulations in place a home in Spain should turn out to be a sound investment.