Spanish Property Prices Predicted to Rise Over Next Four Years

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 20^th 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.

5% Increase in Price for Spanish Properties Predicted by CBRE

5% Increase in Price for Spanish Properties Predicted by CBRE

Real estate experts CBRE believe that Spanish house prices could rise by up to five percent on average during 2016. More houses are being sold and built which is bringing up house prices.

CBRE annually release a Real Estate Market Outlook and their most recent one highlights a series of positive indicators for the residential resale housing market in Spain. Their report has found that more homes will be sold and built leading to less unsold properties in Spain over the whole year.

Great news for sellers as prices are expected to rise

The main thing to come out of the report is the expectation that the average house price in Spain will rise by 5.9% on average with a 6.3% peak rise in the third quarter.

CBRE also expect that 20% more properties will be sold in 2016 over last year, putting power behind the claim that the Spanish property market has recovered.

One area of the market that hasn’t seen this increase yet is the new build sector. Even so CBRE are confident that as many as 60,000 new homes could be built in 2016, which would be an increase on the 45,000 homes built in 2015. This is still less than the previous peak of 160,000 homes per year though.

The trends are still positive and point to plenty of growth. Madrid, Barcelona and Costa del Sol property in Andalucía for sale have always been the most prominent parts of the real estate market and this year they will be joined by Bilbao, Valencia, and Malaga as the demand for property has gone up in these cities.

The CBRE does have some warnings though. The main problems are the slightly decreasing population of Spain, a lack of confidence in buyers, and an economy that is still fragile. These should temper the optimism that people feel but this report, when taken with other studies and statistics from Spanish real estate institutes, serve to add to the belief that property in Spain has become a good investment once more. Now is the time to buy or sell your home in Spain as more buyers and investors are fuelling the market.

Spanish Properties prices are increasing