Property Prices to Rise 6% This Year
|Property prices continue to rise|
The CBRE data builds on the positive news from May suggesting average property prices increased 5.3% more than in 2016. This positive trend is expected to continue across the year for the rest of the country at the most, and certainly in the places where there’s the highest demands for property.
This includes the coastal regions of the Costa del Sol, Costa Brava, the Costa Blanca, the Balearic and Canary Islands, and the major cities of Barcelona, Madrid, Malaga, and Valencia.
These regions are expected to see sustained demand for property and steady price increases, and are expected to see an increase in building activity. CBRE forecasts demand for new builds will reach between 120,000 and 140,000 properties a year by next year, meaning that regions such as the Costa del Sol – where demand is beginning to outstrip supply – could get the developments and urbanisations they need.
There is also some positive rumblings coming from the rental market – which is typically an accurate example of how healthy the Spanish property market is.
CBRE expects the demand for rentals will increase an average of 1.5% nationally, while the annual return on investment in stronger property markets is likely to stay around 5% - likely causing an increase in buy-to-lethome purchases.