Spanish Property Prices Predicted to Rise Over Next Four Years
Great news as the recovery continues, and the Costa Del Sol
is the place to buy
Acuña & Asociados recently did a statistical analysis of the Spanish property market that forecasted steady rises in property prices through 2020, with an average increase of 5% occurring from 2018.
The report, which is the 20th such annual assessment of the Spanish real estate market by the firm, suggests that average property prices will have increased by 2.3% between the start o the year and the end. The trend will then carry over into 2017 as average values increase by up to 5% by 2018, and could potentially rise even higher in 2019 and 2020.
Of course it’s not easy to predict how the Spanish property market will behave across four years, but if you take a look at 2014 you’ll see there is evidence of a trend. Since leaving the recession the property market in Spain has grown alongside the economy and job market.
Property prices in Spain tend to be cyclical, which would suggest that the upward trajectory currently being enjoyed could last few at least the next few years. Given the gradual nature of the recovery it’s less likely that the bubble will burst in 2020. Instead it’s likely that the prices could flatline, or just grow at a slower rate.
It’s impossible to say what will happen for sure, but the Acuña & Asociados experts have made their own educated guess and expect that there will be much more stability in the years between 2016 and 2020 than was seen in the years between 2008 and 2012.
The analysts also expect that this market development will lead to greater investment in new build property, as the stock of new housing in the most popular areas of Spain has become exhausted. Around 82,000 properties were built in 2016, and there is likely going to be more built over the next few years.
More data came from the property figures for October from Spain’s Notaries. The latest data suggests that the average price per square metre of property in October rose 1.5% over last October to €1,275. The average loan was also on the up, rising 0.9% to €125,138, which suggests that mortgage lenders are becoming more generous as the conditions continue to improve.