Undoubtedly, the best thing about the Spanish property market in 2016 was just how predictable, and dare we say ‘dull’, it was. It was the first year for a long time where there was a complete and very welcome lack of drama.
Not only was there a steady rise in property prices, but there was also plenty of property transactions. House sales in Spain rose by 15 percent for the year and there were ten consecutive quarters of growth. So if 2016 was the year the Spanish property market got well and truly back on track, what’s in store for the new year?
Sensible and stable growth
BBVA Research, the analytical arm of the Spanish banking group, is forecasting a 6.5 percent increase in property transactions across Spain in 2017. This will be accompanied by average price rises of more than 3.5 percent, which would bring the average Spanish home back to 2004 values.
According to the bank’s research, there will around 475,000 property transactions during 2017 as domestic demand increases and interest spikes from foreign buyers. There will also be more homes built, with the experts expecting around 70,000 new building licenses to be issued. This will represent a 40 percent rise on the new homes built last year.
- British demand for Spanish properties
The UK’s decision to leave the EU had a noticeable effect on sales of Spanish property to British buyers in the second half of 2016 due to the depreciation of the pound and uncertainty about exactly what thedecision to leave would mean. However, across Spain as a whole, property purchases by Brits still dominate foreign sales and account for nearly a fifth of the market. That is more than double the purchases by French buyers.
- Desirable second home destinations
The recovery of property sales and house prices across Spain means areas such as the Spanish Costas, the Balearic Islands, the Canary Islands and cities such as Barcelona and Madrid will become even more popular second home destinations. The growing economy, low financing costs, excellent potential for rental returns and capital appreciation will continue to drive sales in 2017.
- Demand for new builds
The 2017 forecast for Spanish new builds is also extremely positive with requests for planning permissions to construct new properties currently up 35 percent on 2015. The quantity of home loan requests is also up by 6.4 percent. The demand for ‘cutting-edge’ style properties is especially strong and this is driving a resurgent property development sector.
How can we help?
With the Spanish property market set for another stable year, the prognosis looks extremely positive for British expats looking for a new home in the sun. To help secure your dream move, we offer an English-speaking, fixed price conveyancing service in the Spanish Costas, the Balearic Islands and the Canary Islands. For more information please .