Spain’s property market is off to a flying start for 2017, with the latest data from ServiHabitat, La Caixa bank’s real estate division, predicting record property sales for the coming year.
Last year saw resale property prices in Spain rise by 2.3% according to Spanish News Today, and by 2019 the increase in prices is expected to reach 5.0% per annum.
The forecast is supported by Property Investor Today magazine who reported as early as November 2016 that Spanish property prices were set to rise sharply, and predicted an annual increase in property prices of 6.0% over the next three years.
Murcia Today reported that new build property faired better, with a nationwide average increase of 3.3% in the market price of new real estate in Spain.
Desirability continues to play a part in Spain’s recovery, and just last week International Living magazine declared Spain to be the 7th best place in the world to retire, citing Spain’s low cost of living and real estate affordability as just two of the reasons that the country still attracts property investment from retirees looking to enjoy Spain’s rich culture and Mediterranean lifestyle.
Property Wire, Europe’s premier global property news service, reported last week that the glut of unsold homes built in Spain prior to 2008 was drying up, with 20% of the excess housing stock expected to be sold during 2016 and a similar reduction predicted for the coming year.
Property Wire also state that demand from international buyers will remain a fundamental necessity to sustain the pace of growth and increases in the price of residential property, and predict sharply increasing demand from new markets.
The statement seems to be well founded, as only last week specialist news website OPP Today revealed the latest figures for Q3 2016 from the Spanish Registadores organisation. They show that whilst British buyers still account for the largest proportion of overseas property buyers, demand from Swedish buyers rose by a staggering 22.7%.
Spain’s property market is a far cry from the fragile bubble that existed before the global financial crisis of 2008. Increasing government regulation of financial institutions and more effective oversight of banks and lenders has prompted a culture of financial due diligence and safe practice.
The result is a market that offers property investors stability and assuredness, coupled with consistently rising prices, persistently low mortgage lending rates, and a growing market for long term rental property which promises inflation-beating rental returns.
After almost a decade of volatility, Spanish residential property represents a sound investment, especially in a climate where bank deposit interest and investment yields are stagnant. Dogged with international instability and uncertainty in most traditional investment markets, Spain offers a great investment opportunity with a recent history of stability and consistent growth.