Independent and accurate property prices in Spain

Download the latest Spanish House Price Index
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The Kyero.com Spanish House Price Index is free to download.

It's updated and published quarterly to evaluate the advertised prices of 100,000 Spanish properties.

Kyero.com Spanish House Price Index
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Question: We are condisering investing in a two bedroom rental property in Gran Canaria shortly. According to your index the prices have remained fairly steady over the past few years but do you see any particular trend and could this be affected by a possible relaxation of the building morartorium in the future?

Answer: I agree with you that the market in the Canary Islands has been pretty flat recently:

One of the problems with this trend is that there's so little reliable data available. Our own trends for the Canaries are the result of just a few hundred properties for sale there (compared to approx 20,000 in Malaga). So you should be aware that a few unrealistically priced properties would skew these trends dramatically.

Having said that - there isn't a more reliable source of data (in my opinion) for these reasons.

In terms of future trends, that's even harder to predict. My gut feel is that prices will be pretty much flat across Spain for the next couple of years. Aside from distressed sales, I don't see prices falling much. Spanish sellers would rather wait then reduce their prices and they form the bulk of the market.

If buying now, I wouldn't count on any capital gains in the short to mid term (although I think actual losses are unlikely). In terms of the potential rental income of a property, again I would be wary of banking on that to meet mortgage repayments. There are a lot of holiday home rentals in Spain - more than there are tourists to fill them.

The long let market will grow, I believe, but outside of the largest cities, that's not a well established market. There's demand, but insufficient supply at the moment. I believe that the long let market will grow over the next couple of years but, again, it's a little too soon to tell how that's going to pan out.

Martin Dell, Kyero.com

• Original data is freely available to download from the web site of the Ministerio de Vivienda. No changes have been made to the source information other than for clarity of presentation and translation into English.
• New construction is defined as properties less than 2 years old. These figures *might* include property purchased off plan and 'flipped' or resold in the same period and while the property is still technically 'new'
• Resales are defined as any property older than two years - again, this may not strictly correlate to a property having been sold a number of times
• Except where specifically mentioned, all figures exclude sales of subsidised or social housing.
• Sales of urban and rural land are excluded.
• Sales to 'foreigners' are categorised as resident, non-resident and 'other'. For the sake of clarity, only figures for foreign residents in Spain are presented here as they account for the vast majority of cases.
• Actual prices are likely to be unreliable due to the fact that some of the sales price passes from buyer to seller 'under the table'. This amount is never notarised and therefore cannot feature in the MVIV figures.
• As the Spanish government increases their efforts to stamp-out these 'black money' practices, house prices might 'appear' to be increasing when, in fact, a proportion of that increase must be attributed to a larger propeortion of the actual sales value being notarised.