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. 

Data Shows Spanish Property Growth Fuelled by Foreign and Domestic Buyers

Data Shows Spanish Property Growth Fuelled by Foreign and Domestic Buyers

The future looks bright as more and more confidence in buying returns

The Notaries Association of Spain recently published the property sales figures for March, showing an increase of 19.5% in transactions for the month compared to March of 2016.

If this increase wasn’t enough encouragement, the data shows the interest from domestic and foreign buyers is becoming better balanced.

Domestic buyers – who still remained the bulk of the market thanks to their numbers – fell out of love with the property market during the recession. The property market was kept in good health thanks to an increase of demand from British, German, Russian, and Scandinavian buyers.

2017 brought with it a stronger Spanish economy, which increased the confidence many Spaniards have in their financial security, driving up the amount of property and car purchases.

Spain remains a country of contrasts and not every market in every region is seeing the same performance. The new build home sector is still lagging behind, while sales of apartments are up 20.5% and family homes are up 15.6%.

The data from the notaries also revealed the average sellingprice of properties reached 2004 levels. They aren’t quite at the height of their peak, but they are still higher than they have been for some time.

An interesting finding by the Land Registry, which ranks sales based on the number of homes inscribed on the land register and not in terms of actual sales, showed that March saw an increase in transactions of 30% compared to March of last year.

Spain Mortgage Market Records 14% Growth in 2016

Buying property in Spain has never been so easy or cheap

While it’s hard to accurately gauge the growth of the Spanish property market in 2016 because there are a lot of different metrics involved in measuring it, mortgages are one area where the growth is obvious.

After all, mortgages are always mortgages. The data from the Spanish central statistics institutes shows that 14% more mortgages were approved in 2016 over 2015. There were a total of around 281,328 mortgages issued last year in Spain, with December welcoming the 29^th year-on-year increase across 30 months as 20,747 mortgages were taken out by new homebuyers.

December alone saw a 6.9% increase over December of 2015, and continued the welcome trend of increased confidence in the Spanish property market. It also served as more proof that the boom is supported by foreign and domestic buyers alike.

Referring to the trend as an “upturn” would be a little unfair though. The word “upturn” suggests that it’s just temporary, while the reality is that things have been looking good for 30 months now. That’s hardly a temporary boost.

Something else interesting about the data is that the average loan was around 2.8% higher than it was in 2015, which shows not just an increase in property prices (an increase that ranges depending on who you ask) but also the growing confidence of banks and other lending institutes in the solvency of borrowers. This basically means that more Spaniards are employed in secure, well-paying jobs, leaving them in better positions to buy homes and reassuring banks that the economy is doing well.

In terms of numbers, the average mortgage in December was €112,680, with an average of €109,759 for the entire year.

Spanish Economy Outperforms Much of Europe with 3.2% Growth

Spanish Economy Outperforms Much of Europe with 3.2% Growth

The Spanish economy is booming.

It’s not often that individuals care all that much about GDP (Gross Domestic Product). Individuals are often more concerned about issues such as cost of living their wages, their job security, their ability to buy the things they need and, of course, their personal happiness.

Given the way that Spain endured a double-dip recession a few years ago, however, one could hardly blame Spaniards for feeling proud and happy of the way that Spanish GDP grew 3.2% during 2016.

The reason why this growth happened is because of the hard work, positivity, and stoicism of the Spanish people. They kept the country moving through the dark times, with some help by government reforms that breathed new life into the labour market.

The National Statistics Office (INE) of Spain reported that the GDP in Spain grew another 0.7% during the fourth quarter of 2016. This means that 2016 was one of the best years for the Spanish economy in over a decade.

This growth stems from the third quarter of 2013, when Spain experienced growth for the first time in over three years. Once the upturn had begun, the growth steadily increased, with only the occasional fall during particularly economic stress.

The resilience of the Spanish economy means that the country has outperformed much of the rest of Europe. It’s expected that this growth will continue through 2017, even if it’s at the smaller rate of 2.7%.

Even so, it would mean that living in Spain could no longer be thought of as a recovering economy. Instead the country is one where growth and confidence are assured. This means great benefits for individual Spaniards, including better job prospects, wage growth, an increase in confidence in the tourism and real estate industries, and just a general improvement to the national mood.

The Spanish economy is doing so well that it’s now performing at 80% of the output of 2008; just a few short months before one of the largest economic crashes in Spanish history. That is certainly worth celebrating.

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.

Spanish Economic Growth Better than German Economic Growth

Spanish Economic Growth Better than German Economic Growth

The resurgence of the Spanish economy that began in 2015 is continuing in 2016. Data from the Markit Composite PMI index over the weekend showed that the Spanish GDP grew by 0.6 in the first quarter of 2016.

Great news for Spain as it continues to make progress

The average growth for the Euro area was 0.3% in the first quarter. Germany saw a growth of 0.4% which means that the Spanish economy grew more than Germany, Italy and France. Most of the European countries experienced lacklustre growth overall.

The index shows that the Spanish performance of 55.1 PMI in March was better than the forecasts predicted. It even performed better than Bloomberg predicted. Bloomberg urged Spanish leaders to approximately number the shoots of recovery of last year.

It seems like this is what is happening even though the country is going through tough a rough political climate at the minute. It looks like there will be a re-election in June unless the problem is solved and a leader emerges.

This political turmoil hasn’t damaged the job market however or the continues growth of the real estate property market and cities of Spain in March saw more than 50,000 jobs created and led to a drop in Spanish unemployment for the second month in a row.

More data was published last week to show that the cost of living in Spain was stable and the service sector in Spain reached a four-month high in March. Spain did a good job this year of avoiding the typical post-Christmas slump that can affect the employment figures in the service sector.

Andalucian Airports in Spain see a record growth in passenger traffic!

Andalucían Airports in Spain see a record growth in passenger traffic!

The year 2016 is seeing a major boost to the number of tourists visiting Andalucía and the numbers just seemed to increase in February too!

Malaga Airport

All the airports combined of Andalucía saw a total of 1,243,314 passengers flying in a total of 14,760 flights in February. Compared to the previous year, the number of tourists has jumped up by 16.2%, with the count being 2,374,543 passengers.

Malaga

The statistics revealed by Spanish Airports and Air Navigation (AENA), Malaga was the busiest airport in the region during the first two months of 2016 and the total traffic was 1,527,221 passengers. This is a 15.7% rise when compared to the passengers it handled in the last year during the same period.

A total of 12,646 registered flights operated in the Malaga area, making it the highest for this region. Also, this indicated a growth of 11.9% when compared to last year.

As per officials from the Costa del sol Malaga airport, the airport continues to attract more traffic and the trends have been the same since the end of 2015. Overall, the passenger traffic went up by 17.8% and the number of flights operated increased by 14.5% when compared to the statistics of previous year.

Other Regional Airports

Seville stood at the second position which handled 599,541 passengers, making it the second busiest airport. The rise compared to previous year was 15.5% and the number of flights operated increased by 3.3% over the past year, making it handle a total of 6,355 recorded flights.

Granada Jaen or Fedrico Garcia Lorca saw 107,734 being handled, which was a 12% increase and Almeria airport handled 78,484 passengers,  registering a whopping growth of 35.4%.

In the case of Jerez de la Frontera or Cadiz, the increase was 21.3%, attracting passenger traffic of 60,137. However, only Cordoba was the airport in Andalucia to report a fall of passengers handled by 3.4%, taking the count to 876 passengers.

Passengers

A high number of passengers took commercial flights, accounting for 790,747 of the total passengers. The increase in international travelers was 16.8% when compared to the statistics of 2015.

Domestic flights accounted for 146,834 passengers, which represents a 21.7% increase in the number of travelers. The domestic flights operated in Spain also went up by 17.9%.

UK attracted the largest number of international passengers and the count stood at 226,819. Germany stood second with a total of 68,753 passengers, while Netherland came third with 46,908 passengers.

 2016 looks set to be a record year for holiday makers and northern Europeans looking to buy property in the Costa del Sol.

Costa-del-Sol-Malaga-airport-sees-record-growth

Malaga sees highest growth in number of startup businesses in Spain opened since 2007

Malaga sees highest growth in number of startup businesses in Spain opened since 2007

Due to the recent years surge in property sales, mortgage approvals and holiday bookings, the economy of Spain is back on track and with the sudden rise in the number of business startups gives a clear indication about the growth of economy. Malaga, the home to Costa del Sol has seen over 5,177 business startups opening in 2015, similar to the likes of how the economy was before the 2008 crash.

Highest start-up businesses since 2007 

The annual growth seen in Malaga province was 8.5%; which is the highest for business property for sale in Andalucía, and the Seville province stood at around 1,500 startups opening in the same year, taking the second place.

As per the statistics provided by INE (National Statistics Institute), 9,443 companies were opened in Spain totally for January 2016 alone, which is a 14.7% year on year growth against January 2015.

Other communities such as Madrid, Cataluna and Andalucía also saw a massive growth in the number of business startups and the counts stood at 1,823, 2,183 and 1,570.

All the business startups this year predominantly belonged to the real estate, finance and insurance sector in Spain and collectively attracted a capital of nearly €293 million while the communications and telecommunications sectors in Spain saw a total of €2.22 million being infused.

The whole of Spain and the Costa del Sol is feeling positive changes and you can feel the optimism in the air. Investment has returned and growth is moving forward in the right direction.

Decrease in the growth of Spanish population.

Decrease in the growth of Spanish population.

Data from INE (National Statistics Institute) published last year showed that there was more deaths than births in the first half of the year for the first time over 10 years.

The number of deaths surpassed the figure of births by 19.000 and not since the Spanish civil war of 36-39 and previously of the pandemic of 1918 from the Spanish flu has the country ever seen this increase.

Other nations in Europe for example Denmark, Sweden and Netherlands have seen a decrease over the years in the population due to age. But due to Spain´s catholic religion in Spain and the belief in big families was up to recently the reason that Spain’s birth rate exceeded its death rate.

As the world has become easier to travel and the cost of living in Spain is raising, the next generation continues to increase more than the average family wage. More people are opting to have less children in Spain or putting off having them till later in life, that way giving people more time and finances to live in other countries and to travel around the world.

Due to Spain’s mass unemployment many of the younger generation left the country between 2012-2014, looking for better work positions in Europe.

Spain´s population currently is around 46 million, but is due to decrease around 1 million by 2030 and is estimated to decrease further by 2060 to around 40 million.

Spain is also ageing also, the populations average age is 43.2 this would make it the 10^th oldest in the world. There is an expectation that this will rise to 50.1 by 2030. This would put Spain as the 4^th oldest in the worlds table.

Spain is known as one of the world countries where its population has a longer life expectancy and also their love of children is also well known but the country. So if you would like to do your part and help out, think about moving to Spain while you are still young and help the ageing population.

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.

GROWTH PREDICTIONS OF THE INTERNATIONAL MONETARY FUND

GROWTH PREDICTIONS OF THE INTERNATIONAL MONETARY FUND

The International Monetary fund has predicted that the Spanish economy will increase by 2.7% in 2016 and by 2.3% in 2017. 

However the Spanish Bank – which raised its 2016 development figure to 2.8% recently after a very uncertain general election on 20th of December 2015.

These amounts symbolize the biggest upward modification of any of the world's greatest economies, with an upward movement up two-tenths on the year 2016, and one-tenth of a point in 2017 from the projections carried out on October 2015.

The World Economic Outlook report has stated that the IMF is expecting Spain’s growth to overtake that of the USA, Japan and even Canada this year. That would put it in the lead position among other developed economies worldwide.