Property values buoyant in Barcelona, but bargains reign in Zaragoza

HOME prices in Spain are at their highest in parts of Catalunya, Galicia and Mallorca and at their lowest in Almería and Zaragoza, recent sale figures show.

Figures from the European Union statistics office, Eurostat, also show that the average home in Spain had gone up 1.3% in value by the end of 2014, having reached their lowest price ever in the first half of the year.

The climb in housing values continues to lag behind the rest of the Eurozone – rising at 0.3% in the third quarter of last year in Spain, compared with an increase of 0.5% in the other single-currency member States – but is heading in the right direction for investors and those who hope to sell their homes in the foreseeable future.

Property prices vary greatly across the country, with a given type of home in one province costing a quarter of an identical house or apartment in another.

As a result, careful scrutiny of the market reveals that everything from rock-bottom prices on spartan, no-frills homes which may need some cosmetic renovations through to luxury villas in élite, sought-after areas can be found depending upon where the buyer searches.

Regional price breakdowns taken from several thousand estate agencies show vast variations, with some far exceeding the national average and comfortably holding their value, and others offering jaw-dropping bargains.

For example, homes in the city and surrounding province of Barcelona average at around €600,000, making it the priciest part of the country, or on the island of Fuerteventura – known for its very mild winters, along with the other Canary Islands – the typical price across the board is around €158,000.

Buying an average home in the south-eastern province of Almería will set you back about €135,000, or in Cádiz, around €220,000.

On the Costa Brava, the typical home price rises to €374,000, or up to €418,000 in the Balearic Islands and in the unlikely-sounding holiday-home location of the province of Pontevedra, in the far north-western region of Galicia, the average price is about €270,000.

Galicia is growing in popularity, especially with holiday-home owners who are not fond of the sweltering Mediterranean or southern heat in July and August, given that its summers are very mild, and who enjoy dramatic countryside – unspoilt beaches, dramatic cliffs and emerald-green hills – and it is one of Spain's wealthier regions with four large cities, three of which are provincial capitals.

In Zaragoza, Aragón, the average price is around €37,000 and, as well as being Spain's fifth-largest city, it is comfortably close to the ski resorts in the neighbouring provinces of Teruel and Huesca.

But even in holiday hotspots and expatriate belts, end sale prices reveal that among the luxury pads worth hundreds of thousands, very respectable properties can be bought at values of 15 years ago.

Large apartments in sought-after areas in the provinces of Valencia and Alicante can often be found for under €50,000 and even villas with pools for prices of less than €200,000.

Most buyers – around 60% - purchase their Spanish properties in cash, according to statistics, but banks are slowly becoming more willing to offer loans, with notaries in the country – responsible for the final signing and sealing – reporting an increment of 35% in the past year of homes being bought with a mortgage.

And with the Euribor having plunged to its lowest-ever level, continuing a five-year downward trend, meaning now is an ideal time to seek a home loan.