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.

Leading Spanish Bank Predicts Property Market Will Have Strong 2017

Leading Spanish Bank Predicts Property Market Will Have Strong 2017

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.

2017 continues to look strong for buying and

selling property in the Costa del Sol and Spain

Spain is currently going through a lot of uncertainty right now so many would appreciate this positive outlook. One big uncertainty facing Spain right now is just who will be running the country as it enters 2017, along with the whole Brexit situation.

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.