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Barcelona, Madrid and some coastal areas leaving rest of Spain behind

Average Spanish house prices rose by 1.4% in the first quarter (Q1 average price compared to Q1 2015), but the average disguises big regional variations.

House prices increased fastest in Catalonia, around Madrid, the Balearics, the Canaries, and Malaga province, home to the Costa del Sol.

Most of these areas are benefiting from foreign demand on top of local demand for first and second homes. Notable increases took place in Santa Cruz de Tenerife (Canaries) and Catalonia’s Girona province, home to the Costa Brava, both up 5.9%.

The only provinces with a coastline where prices fell were Alicante (Costa Blanca), Murcia, Cádiz (Costa de la Luz), Pontevedra in Galicia, and the Basque Country’s Guipuzcoa province.

Most of the provinces in the Spanish interior are still in the doldrums as far as house prices are concerned, according to a report by Spanish Property Insight. Prices fell as much as 7.8% in Alava, 6.7% in Teruel, and 6.3% in Jaen, while in Barcelona property prices were up 9.2% in Q1, and 7.5% in Madrid, the two hottest markets according to the report. Malaga, the capital of the Costa del Sol increased by 6.7% compared to Q1 2015.

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