The residential property market in Spain is seeing continued growth in the first quarter of 2018 as prices increased overall by 3.8% year on year, with activity led by Madrid and Palma de Mallorca.

The capital city saw prices increase by 17% in the first three months of this year compared to the same period in 2017 and by 14.7% in Palma de Mallorca, according to the latest index from appraisal firm Tinsa.

Prices also increased strongly in Barcelona with a rise of 11% and in Pamplona with a rise of 10.4%. But the growth varies on a regional basis, the index report points out that prices have fallen in three regions, down 1.3% year on year in Castilla-La Mancha, down 0.6% in Extremadura and down 0.1% in Galicia.

Madrid recorded the biggest quarter on quarter asking price rise at 7.8% €3,540 per square meter and year on year prices are up by 21.3%. But they are still 12.3% down on the market highs of 2008.