2016 Growth forecast to continue to rise for
real estate market in Spain
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| Growth forecast for Costa del Sol and Spain |
2016 will continue to
see the real estate market in Spain recover according to data by the evaluation
company Tinsa and the General council of Notaries.
Prices are estimated
to rise nationwide for the whole of 2016, as Tinsa projected forecast shows
that the average property price rose in November 2015 by 1.9% compared to the
previous year.
The acceleration of
property prices increase is due to last year’s growth of 1.9%, with real estate
values going up steadily each month throughout the whole of 2015.
Looking at individual
Spanish regions, the property market of Madrid and Barcelona reached their best
performance in November and saw the price increase and average of 3%. Other
parts of Spain like the Costa del Sol which is another very popular coastal
area was continually increasing and averaging out of 1.4%.
Spain did see some
property areas for sale in the Costa del Sol increase and in places like Murcia, which saw
the market value fall again around -3.3%. The property sector of Spain’s second
largest bank BBVA and Tinsa have both agreed on a positive growth and is
expected in nearly all Spanish regions for 2016, with the cost of property
encountering continued growth.
Nearly all Spanish
regions will show evidence of an increase on the 2015 sales market. The Spanish
largest banks have predicted that mortgages are also going to show an increase,
which also help with a large amount of property sales for the current year of
2016.
Last year’s Spanish
bank reports for the summer detailed that property purchases increased a 9.5%
in the month of August compared to the same figures of 2014, it also shows that
September had an 8.7% increase.
New & Off Plan development properties in Spain and surplus stock that were never sold after
the fanatical crisis years, have also seen an increase of sales in 2015/2016,
with the surplus homes especially in the Costa del Sol nearly all extinguished
and this is due to a demand in the more sought out regions of Spain and buyers
are now purchasing these properties that before fell short of the property
market.
Last year general
elections have shown that the Spanish economy will show a healthy increase in
2016. All forecasts and data point to suggest that GDP growth will carry on,
this will also help to assist the property market in Spain, not just in the
amount of property purchases, but also in an increase of the average property
price.
With the continued
sales looking good for 2016 and 2017 Spain is now fully over the property
financial crisis and investors can look forward to some continual growth and
return on investment.
