The latest figures from Spain’s National Statistics Institute show that Spanish house prices rose at their fastest pace since the beginning of 2008 at the end of last year. The data shows house prices rose 1.8% in the fourth quarter from the same period the previous year, according to the, compared to a 0.3% annual rise in Q3.
This new data is the latest sign that the country’s real estate sector is turning a corner for the first time since 2008, when the country’s decade-long property boom suddenly entered a prolonged economic downturn.
Overall, prices across Spain rose 0.3% in 2014 from the previous year earlier, the first annual rise since 2007. Prices fell 10.6% in 2013 and have fallen, on average, almost 40% since the beginning of the economic crisis.
The country’s economic output is expected to grow by as much as 2.5% this year after returning a small annual expansion in 2014, boosted by growing domestic demand. General unemployment is also falling while the construction sector is growing.