Thursday, 28 July 2016

Expert Predicts Next Five Years Will be Great for Spanish Property

Expert Predicts Next Five Years Will be Great for Spanish Property

According to one professor the outlook for the Spanish property market is great. The real estate expert said that now is the best time to purchase property in Spain. His confidence comes from all the data and trends that suggest the next five years will be truly great for the Spanish property market.

The future is still bright for property in Costa del Sol
The expert in question; the economics professor and director of the real estate programme at the University of Barcelona Gonzalo Bernardos is definitely in a good position to make such a claim about the health of the property market.

No doubt his words are going to be eaten up by the thousands of people who are considering buying property in Spain. His words will definitely be welcomed following the uncertainly of the Spanish property market after the Brexit, which threatened to undo all the good that went into the property market in recent years.

Bernardos believes that 2016 will be the first year in the five-year golden period of expansion; a period in which every property asset will grow in price. Mark Stucklin, a property insight expert, took Bernardos’ words to mean that Spanish property is definitely going to be a one-way bet for the next five years. People looking to invest in property would do well investing in the popular areas of Spain such as Barcelona, Madrid, Ibiza and Merbella, along with most of the Costa del Sol.

But just what is behind the confidence Bernardos feels? He also added that the low interest rates of Spain are helping make property there even more attractive and that the recent economic recovery is helping to create a perfect storm.

He says that the residential market in particular is becoming a refuge for investors once more and that a key part of this is the low interest rates. The low interest rates are helping to make monthly mortgage payments far more affordable than the average rental prices. With this expected five years of growth and better job security Bernardos believes that it makes sense for people to begin buying rather than renting.

Bernardos believes that the disastrous decade that was from 2006-2015 will be followed by five fantastic years of an excellent property growth from investors . The interest from investors, coupled with the strong economic growth, will see the end of the hangover and bring the real estate market to providence.

These are definitely decisive words. Bernardos is also confident that if another international economic shock happens it will be mitigated by an increase in spending in Spanish households and company investment with a focus on construction.

Bernardos even had some words for people who were worried that his words sounded as if they came from ten years ago. He assured those people that there will be no room for speculators in this new golden property market.

He added that even if speculative demand does make a reappearance it will be much lower than last time and that banks have learned their lesson and will not give people money to fuel their speculations.