Spain has now been recorded to be the sixth biggest real estate investment market worldwide.

Spain has now been recorded to be the sixth biggest real estate investment market worldwide.

Property for sale in Costa del Sol and the overall real estate market in Spain has now become the sixth biggest worldwide with regards to sales volumes confirmed by CBRE consultancy company annual data.

Spain

The real estate market in Spain came in 16^th in 2013 and 11^th in 2014 but has risen to 6^th place last year due to the remarkable sale growth of 2015 and has been seen in many other regions of the country.

Spain is showing a higher interest in property purchases than China, Canada and even France according to figures, this has begun bringing high investment companies like George Soros a leading US billionaire to look into the commercial sector in Spain.

The CBRE predicted that the Spanish property market in 2015 was to have a total investment of up to €13 billion, this would surpass the Spanish record of 2007 which was €10 billion just before the market crash took place.

Due to the much needed transparency and changes made to Spain’s real estate market, this has made for a much healthier sector and has deflected any unethical investors who affected the property market with artificial price inflation.

Within the residential property market, the rise in prices have been steadily increasing in the right way, this reflects on the sector that value for money and reduced properties in the Costa del Sol that are available shows when purchasers can make a good investment when buying good quality properties in the highly sought out areas of the world.

CBRE have said that the Spanish market is one of the places that property purchases will give investors a good return on rental income and also through capital gains making it more profitable than the real estate sector in the UK for example.

Confidence is flooding back to the Spanish market especially buying property in the Costa del Sol, CBRE data show that some of Spain’s capital is now making its way to overseas real estate with figures showing that half of last year reached €1.3 billion – showing a bigger investment overseas than richer countries such as Japan and Norway.

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.