Spanish Property Selling at Fastest Rate in Five Years
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| Spain is back as property sales are on the move |
2015 saw over 400,000 homes sold in Spain. This was the most
houses sold in a year since 2010 and an overall growth of 9.8% over 2014.
The Ministry of Development published data showing that
there were 401,281 transactions in 2015. 114,000 of these transactions took
place in the fourth quarter of the year suggesting that 2016 will be a strong
year for the property market and may even see more records broken.
While this number is a lot less than the number from 2006,
when an unsustainable 1,000,000 homes were sold, this is definitely a strong
growth that should be more sustainable. The Spanish property market in the Costa del Sol is definitely on the
road to recovery after the global economic crisis.
The signs show that, despite the political troubles Spain is
going through, the property market should grow even more and experience a
distinct shift in nature. In 2006 roughly half of the homes that were sold were
second hand homes. However in the last quarter of 2015 this figure was almost
88%. This suggests that the market is stabilising organically rather than
because we’re seeing more homes built on the backs of credit.
There are currently more new homes in Spain than the country
needs, even after the three year slump between 2007 and 2010 when barely any
new property was built. This reveals that the market is likely full of new
property that won’t be sold, but has a healthy mix of supply and demand for
resold properties.
This is one of the best signs of a healthy property market
that is ready to grow at a steady pace and now is the time to buy property in the Costa del Sol.
