The analytical arm of the Spanish bank BBVA; BBVA Research, is predicting that property transactions in Spain will go up by 6.5% in 2017. This increase in sales will be coupled with a 3.5% average price increase.
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2017 continues to look strong for buying and
selling property in the Costa del Sol and Spain
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However the analysts at BBVA believe that, in the
medium-term, the Spanish property sector will perform how the economy is; which
would mean that there will be sensible and stable growth. The economic growth
in Spain is currently among the best in the entire Eurozone so it will be
interesting to see if the property sector follows suit.
According to estimates from the bank it’s expected that
around 475,000 home transactions are going to take place next year as both
domestic and foreign demand for property is on the up. Foreign interest is
becoming more diverse as more Scandinavians, Americans, and Chinese look to
scoop up a home.
As the confidence is building the actual homes them selves continue to be built. It’s also expected that around 70,000 new building
licenses are going to be issued in 2017, which is a 40% increase on last year.
A property price increase of 3.5% would mean that the price
of the average Spanish home is back where it was in 2004. This would mean that
prices would be back to their pre-boom levels, but luckily very few people are
predicting that Spain will experience the same explosion of growth witnessed in
2005 that led to the bubble bursting as the market was flooded by consumers
with more credit than sense.
The growth is expected to be more sober this time around as
interest rates are kept low and the economy is expanding within manageable
levels. It’s expected by the BBVA that some 800,000 new jobs will be creatednext year in Spain, which is just the shot in the arm the country needs to stay
the course of recovery.
