Leading Bank Predicts 2.5% Rise in Spanish Property Prices This Year

Leading Bank Predicts 2.5% Rise in Spanish Property Prices This Year

The future is looking bright for property owners in Spain

Leading bank BBVA – in their latest property market analysis – predicted Spanish property prices are due for an average increase of 2.5% this year, with the Spanish economy continuing to improve and the number of unsold homes continuing to dwindle.

Conditions as far as both metrics went improved drastically during 2016. It’s expected that Spanish GDP will grow another 3% during this year, putting many domestic and international buyers alike in the perfect position to buy their Spanish home in 2017.

BBVA bank also expects that – as a result of low mortgage rates and reduced numbers of unsold properties – that more property transactions will take place this year. It might not be as sharp as the 13.5% increase from 2016 (which some experts believe could be actually be as high as 19%), but it will still be impressive.

All in all, it’s expected that over half a million properties could be sold in Spain during 2017, with many of these purchases financed through Spanish mortgages. BBVA did issue a warning that these low interest rates aren’t forever, and are already expected a downturn in the amount of mortgages issued in 2018 as interest rates start crawling up.