Spanish Property Market Forecast 9.3% Growth in 2018

Spanish Property Market Forecast 9.3% Growth in 2018

Spanish Property continues its recovery 

It’s estimated that 526,000 properties will be sold in Spain during 2018 – an increase of 9.3% over the 481,000 home sales expected in 2017.

The anticipated growth will also bring in a nationwide average price increase of 6.1%, which is just under the 6.9% price increases from this year. Properties will still be affordable in 2018 however, as even with this anticipated 6.1% price increase average Spanish property prices will still be a good 27% below the peak from 2007.

The data comes from Anticipa, one of the leading real estate providers and analysts in Spain. The firm compared the projections for next year against the performance of last year – 2016 – and found home sales increased 21% between 2016 and 2018.

This is an impressive level of growth, especially when set against the crash in Spanish property less than a decade ago, not to mention the following economic problems Spain has had, including a recession.

The analysis for 2017 comes from the fourth quarter projection that home prices are set to increase 5% during the final three months of 2017.

What’s most exciting about the forecast is the calculation that over 520,000 homes will be sold next year. This would mark the first time that over half a million homes have been sold since 2008, which is nearly double the figure from 2013 when only 285,000 homes were sold. 

While the forecast for next year is still around 42% less than the record 900,000 homes sold in 2006, it’s built on a solid foundation unlike 2006 when the credit bubble was set to burst at any moment. 

Spanish Growth Forecast Increased by 2.7%

Spanish Growth Forecast Increased by 2.7%

While the Spanish economic outlook has been looking good for a while the Economic Minister of Spain Luis de Guindos announced that the growth forecast for the rest of 2016 would be increased by another 2.7%.

The future is looking Bright for Spain

The Minister says that Spain could very well pass the 3.2 increase in Gross Domestic Product (GDP) seen in 2015 as long as the political impasse in Spain – Spain has held two general elections in six months with no clear winner – comes to a close.

De Guindos said that he believes the current growth projections are very prudent and that he will revise the growth for 2016 in the next set of forecasts to be issued before the end of July.

The Minister was keen to stress that Spain is becoming an even better place to do business day by day, citing how the country has internationally recognised business schools, low prices on real estate, great weather, cost of living being so low and a solid infrastructure. All of which he believes make the country so appealing to investors.

The Minister believes that creating a stable government which would then form a strong economic policy could see the country outdo the growth they saw last year. The Popular Party emerged as the party with the most votes in the last election but, once again, they failed to secure a majority. The far-left party Podemos also lost votes in the election which suggests people are voting for stability; something Incumbent Prime Minister Mariano Rajoy was keen to hit home.

While he has presided over a number of tough austerity measures it’s impossible to claim the country hasn’t ultimately had an economic upturn. Unemployment is down consistently and many industries such as hospitality and service have seen a rise in growth over the past few months.

Even the banking industry in Spain, which was reliant on an EU bailout following the last recession, has managed to head in the right direction. De Guindos believes that the banks can continue to act responsibly and help the country continue to grow. He said that the banks were cleaned up in 2012 after the bailout so the country doesn’t need to worry about the banks anymore.
All in all the out look for spain and residents is looking good.

Spanish Growth Forecast Increased by 2.7%

Spanish Growth Forecast Increased by 2.7%

While the Spanish economic outlook has been looking good for a while the Economic Minister of Spain Luis de Guindos announced that the growth forecast for the rest of 2016 would be increased by another 2.7%.

Marbella in the Costa del Sol enjoying welcomed growth

The Minister says that Spain could very well pass the 3.2 increase in Gross Domestic Product (GDP) seen in 2015 as long as the political impasse in Spain – Spain has held two general elections in six months with no clear winner – comes to a close.

De Guindos said that he believes the current growth projections are very prudent and that he will revise the growth for 2016 in the next set of forecasts to be issued before the end of July.

The Minister was keen to stress that Spain is becoming an even better place to do business day by day, citing how the country has internationally recognised business schools, low prices on real estate, great weather, cost of living being so low and a solid infrastructure. All of which he believes make the country so appealing to investors.

The Minister believes that creating a stable government which would then form a strong economic policy could see the country outdo the growth they saw last year. The Popular Party emerged as the party with the most votes in the last election but, once again, they failed to secure a majority. The far-left party Podemos also lost votes in the election which suggests people are voting for stability; something Incumbent Prime Minister Mariano Rajoy was keen to hit home.

While he has presided over a number of tough austerity measures it’s impossible to claim the country hasn’t ultimately had an economic upturn. Unemployment is down consistently and many industries such as hospitality and service have seen a rise in growth over the past few months.

Even the banking industry in Spain, which was reliant on an EU bailout following the last recession, has managed to head in the right direction. De Guindos believes that the banks can continue to act responsibly and help the country continue to grow. He said that the banks were cleaned up in 2012 after the bailout so the country doesn’t need to worry about the banks anymore.
All in all the out look for spain and residents is looking good.

Experts forecast real estate market of Spain to see a growth till 2025

Experts forecast real estate market of Spain to see a growth till 2025

The real estate market in the Costa del Sol and Spain is set to see a 40% growth within the next ten years, opined an expert.

With the prevailing trends, the growth trends can be expected up to 2025 as per forecasts from Jose Luis Suarez, who is a professor of financial management at the IESE Business School.

After considering the existing property trends, Suarez said that the appreciation of property prices are certain for the next decade and it is similar to the trends exhibited by the real estate before it reached a new high in 2008, just before it crashed.

The professor predicts that the property price will go up by 40% by 2025, as Spain is a hot destination for property investments.

The demand for houses in Spain will go up and nearly 100,000 houses will be added every year until 2020, following which there will be an addition of 140,000 houses annually till 2025.

This time, the property hype is controlled and is not like the last time, with investors keeping it realistic and not expecting quick returns from the market. The increase in property prices for the first quarter in 2016 stood at 6.3%.

Suarez indicates that it is a bright season ahead for the housing industry after a lean period in 2014, where only 50,000 houses were added, unlike the peak of 800,000 houses back in 2008 before it all crashed.

Number of UK nationals purchasing in Costa del Sol and Spain rises 26% in a year

Number of UK nationals that buy property in Costa del Sol and Spain rises 26% in a year.



Various estate agents working in the Spanish property market have informed that British nationals are purchasing again in Spain, as records at land registries show that this has risen by around 25% since 2014.

Moreover, the real estate market confirms that the recuperation of the Spanish real estate market has started again with a great surge in most Spanish regions especially the resale property Costa del Sol. With Engel & Volker’s and Lucas Fox International affirming that confidence in the Spanish market is high amongst both national and foreign purchasers mainly from Northern Europe.

In fact, as indicated by Lucas Fox, the quantity of properties sold to Spanish nationals has had a big increase with much as 50% last year alone.

The statistics of third quarter 0f 2015 which were distributed by the Spanish Property Registrars demonstrate that more than 80,000 homes were bought and sold between the months of July and September, which was 16% up on the same quarter in 2014.

Over that period, the registrars analysis affirmed, the number of purchasers from the UK was up by 53% – due to a blend of the strong sterling versus the euro, with affordable and bargain properties Costa del Sol and coupled with a strong British economy and the guarantee of rising property prices for Spain in the future.

In 2007 was the last time the pound sterling was above €1.4, and has started to reach those figures again.

Spanish property costs in prime areas are still immensely competitive, particularly if you place them against any other important key European property locations. An enhancing national economy is another main consideration – increasing at 3.4% from July to September, the speediest yearly rate growth since 2008.

Further reassuring news also has originated from Spanish mortgage expert Mortgage Direct, which stated that inexorably competitive rates are bringing more purchasers back to the Spanish property market.

"I honestly think we are in for an extended period of low rates in the Eurozone," Kevin Monger, who is the Mortgage Direct broker reported to the OPP. "The financial climate is still visibly poor in a significant number of other countries that make up the Eurozone."

Information that were distributed last year showed that the British buyers were flying in to the Coast del Sol on viewing trips and were the largest  purchasers and bought one-fifth of all Spanish property sales last year.

2016 Growth forecast to continue to rise for real estate market in Spain

2016 Growth forecast to continue to rise for real estate market in Spain

Growth forecast for Costa del Sol and Spain

2016 will continue to see the real estate market in Spain recover according to data by the evaluation company Tinsa and the General council of Notaries.

Prices are estimated to rise nationwide for the whole of 2016, as Tinsa projected forecast shows that the average property price rose in November 2015 by 1.9% compared to the previous year.

The acceleration of property prices increase is due to last year’s growth of 1.9%, with real estate values going up steadily each month throughout the whole of 2015.

Looking at individual Spanish regions, the property market of Madrid and Barcelona reached their best performance in November and saw the price increase and average of 3%. Other parts of Spain like the Costa del Sol which is another very popular coastal area was continually increasing and averaging out of 1.4%.

Spain did see some property areas for sale in the Costa del Sol increase and in places like Murcia, which saw the market value fall again around -3.3%. The property sector of Spain’s second largest bank BBVA and Tinsa have both agreed on a positive growth and is expected in nearly all Spanish regions for 2016, with the cost of property encountering continued growth.

Nearly all Spanish regions will show evidence of an increase on the 2015 sales market. The Spanish largest banks have predicted that mortgages are also going to show an increase, which also help with a large amount of property sales for the current year of 2016.

Last year’s Spanish bank reports for the summer detailed that property purchases increased a 9.5% in the month of August compared to the same figures of 2014, it also shows that September had an 8.7% increase.

New & Off Plan development properties in Spain and surplus stock that were never sold after the fanatical crisis years, have also seen an increase of sales in 2015/2016, with the surplus homes especially in the Costa del Sol nearly all extinguished and this is due to a demand in the more sought out regions of Spain and buyers are now purchasing these properties that before fell short of the property market.

Last year general elections have shown that the Spanish economy will show a healthy increase in 2016. All forecasts and data point to suggest that GDP growth will carry on, this will also help to assist the property market in Spain, not just in the amount of property purchases, but also in an increase of the average property price.

With the continued sales looking good for 2016 and 2017 Spain is now fully over the property financial crisis and investors can look forward to some continual growth and return on investment.

Spain will continue to be one of the best countries and the Costa del Sol area for buying property.