Spanish
Home Values Rise 10% in Three Years
The latest data from the National Statistics Institute (INE)
about the Spanish real estate market shows average home values have increased
10.8% in Spain during the past three years.
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with Costa Del Sol Property Group
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In just 2016, the housing price index in Spain showed that
house prices were up 4% by the end of the third quarter over the same period of
time in 2015. As such house prices have increased by an average of 4% each year
since 2014, which is when they bottomed out.
The increase in house prices in Spain is both a driving
factor for – and a result of – the increased amount of interest in buying and selling Spanish property. Growth was stunted during the recession between 2007
and 2014, which eliminated confidence in the industry. Spain has since come out
on the other end of these dark times.
Many of these transactions are due to an increase in foreign
demand for Spanish property, which was still there for the recession. The data
from the INE also suggests that there is another positive trend developing in
the form of housing starts; people buying their first homes.
This figure rose above 60,000 during 2016, and it’s expected
that some 67,000 first homes will be bought in 2017. The housing market right
now is a perfect cocktail for the first buy market; the economy is stronger,
there’s more job security, better mortgages, and a growing but affordable
property market. There’s never been a better time for property investment.
New housing starts grew 32% in 2016 compared to 2015. The
result is that only 17.5% of young Spaniards are currently living in rented
accommodations.
It’s becoming tougher to find rented accommodation in Spain.
Spain has the fewest amount of homes for rent in the entirety of Western
Europe, with only 2% of accommodations in Spain up for rent.
