IMF Predicts Greater Economic Improvement for Spain in 2017

Spain has to be the best place to live in the EU and has so much 

going for it.

The International Monetary Fund (IMF) upgraded the economic outlook for Spain this week based on the explosion of the tourism sector, strong export market, and growing demand from domestic consumers.

The Spanish economy is now expected to grow by 3.1% according to the IMF. It’s last forecast from April suggested the Spanish economy would grow by 2.6% in 2017.

The upgrade means that Spain is one of the leaders of the EU when it comes to economic success and growing GDP. The IMF added that it was impossible to rule out the idea that Spain might be upgraded again later in the year, especially if more records are broken in the tourism sector this year.

It’s more than just the perpetual attraction of the country for holidaymakers that is boosting the Spanish economy. The IMF were also keen to praise how the government’s reforms in the economy and labour market created momentum, stressing the growing consumer confidence and demand. Altogether, it could create a virtuous circle where money is spent, jobs are created, and the economy expands.

While the government should be trying harder to tackle the problems of youth unemployment and wage suppression, the performance of the Spanish export sector shows the quality of the standards and the competitive nature of Spanish industry according to the IMF.

Spanish GDP rose by 3.2% last year, with growth of over 2.5% in 2015. When it comes to 2018, economists believe that the Spanish economy will continue to grow, especially as the construction and property sectors continue to grow and offer their support.

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.

Expert Predicts Spanish Real Estate Prices Set for 6% Increase

Expert Predicts Spanish Real Estate Prices Set for 6% Increase

Spain's recover looks to continue its uptrend

One of the key players in the Spanish real estate sector has said that the average property value in Spain will increase between 5 and 6% within the next three years.

Humphrey White is the head of the Spanish division of British real estate agency Knight Frank. White says the strengthened economy of Spain is going to spur on strong and sustainable demand with Spanish buyers , while the country will always be a favourite for international investors looking for a popular place in the sun.

White went on to add that the lack of speculative promotion has really helped the Spanish property market. This has brought about renewed confidence in the sector, along with transparency and sensibility.

The result is that there are areas of Spain where there simply aren’t enough good quality houses to go around. So there is room for banks and real estate developers to take to these areas and increase the supply to meet the new demand.

The agent says that Spain currently has a fantastic opportunity to bring in new companies because it offers them high quality properties in prime locations such as city centres near airports, along with a whole host of qualified professionals.

A recent report from Frank Knight showed that Madrid and Barcelona are in the list of the top 20 destinations for the mega-rich; for both residential properties and investment in commercial real estate.

Data published just last week by the National Statistics Institute showed that the amount of foreign buyers investing in Spanish homes increased just under 20% in 2016; with foreign investors accounting for one-fifth of all the homes sold in Spain.

While Brits have always been the biggest demographic of foreign investors in Spain the data also shows that they aren’t growing as quickly in the third quarter. This drop was made up by an increase in interest from other nations including France, Italy and Sweden. The amount of Russian investors however continues to drop.

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.

Expert Predicts Next Five Years Will be Great for Spanish Property

Expert Predicts Next Five Years Will be Great for Spanish Property

According to one professor the outlook for the Spanish property market is great. The real estate expert said that now is the best time to purchase property in Spain. His confidence comes from all the data and trends that suggest the next five years will be truly great for the Spanish property market.

The future is still bright for property in Costa del Sol

The expert in question; the economics professor and director of the real estate programme at the University of Barcelona Gonzalo Bernardos is definitely in a good position to make such a claim about the health of the property market.

No doubt his words are going to be eaten up by the thousands of people who are considering buying property in Spain. His words will definitely be welcomed following the uncertainly of the Spanish property market after the Brexit, which threatened to undo all the good that went into the property market in recent years.

Bernardos believes that 2016 will be the first year in the five-year golden period of expansion; a period in which every property asset will grow in price. Mark Stucklin, a property insight expert, took Bernardos’ words to mean that Spanish property is definitely going to be a one-way bet for the next five years. People looking to invest in property would do well investing in the popular areas of Spain such as Barcelona, Madrid, Ibiza and Merbella, along with most of the Costa del Sol.

But just what is behind the confidence Bernardos feels? He also added that the low interest rates of Spain are helping make property there even more attractive and that the recent economic recovery is helping to create a perfect storm.

He says that the residential market in particular is becoming a refuge for investors once more and that a key part of this is the low interest rates. The low interest rates are helping to make monthly mortgage payments far more affordable than the average rental prices. With this expected five years of growth and better job security Bernardos believes that it makes sense for people to begin buying rather than renting.

Bernardos believes that the disastrous decade that was from 2006-2015 will be followed by five fantastic years of an excellent property growth from investors . The interest from investors, coupled with the strong economic growth, will see the end of the hangover and bring the real estate market to providence.

These are definitely decisive words. Bernardos is also confident that if another international economic shock happens it will be mitigated by an increase in spending in Spanish households and company investment with a focus on construction.

Bernardos even had some words for people who were worried that his words sounded as if they came from ten years ago. He assured those people that there will be no room for speculators in this new golden property market.

He added that even if speculative demand does make a reappearance it will be much lower than last time and that banks have learned their lesson and will not give people money to fuel their speculations.