Posted on 17 March 2017
When we think about Spanish property prices we tend to cast our minds back to the doom and gloom of the global financial crisis in 2008, when they began to tumble across the land. Thankfully the time has come to report on a more positive landscape, in which prices are on the up and buyers are returning in their droves.
The turning point
The watershed for this resurgence can be traced back to 2014 when prices finally bottomed out, having decreased by a staggering 13.7%. Two years of double-digit annual growth later and 2016 proved to be a bumper year in the Spanish property market. With the stats making for very encouraging reading indeed: 362,182 home sales were recorded, up 4% year-on-year and 7% month-on-month, and prices rose by a robust 4.7%, well above the European average.
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More of the same in 2017
Not wanting to rest on its laurels the market has maintained this upward trend in 2017. The number of residential property sales recorded by Spain’s property registrars rose 18.1% – to 38,457 – during January, compared to the same time last year – the highest monthly total since 2013. An encouraging reading that is more or less mirrored across all Spain’s 17 regions, with sharp rises reported in the autonomous communities of Cantabria (45.1%), the Balearic Islands (40.5%), La Rioja (40.1%) and Cataluña (30.6%). The average price of homes that changed hands in January is also reported to have risen, but by a more modest 1.8%.
Brits can cash in
So what do all these figures mean for Brits with an eye on a property in the Spanish sun? Investing in good old fashioned bricks and mortar is seen as a reliable investment, as long as the local property market is in good shape now and the futures bright. Therefore, this sustained increase in Spanish property prices and sales means you’ll be able to enjoy all the trappings of the relaxed, sun-drenched Spanish lifestyle, safe in the knowledge that your property should grow in value. Leaving you quid’s in and perhaps able to upgrade your home in the sun when the time comes to sell up.
What does the future hold?
But how can we be sure that the good times will continue to roll in Spain? First and foremost the Spanish economy is expanding, with leading research departments making upward revisions to their Spanish economic forecasts for 2017 and 2018. With higher economic growth and rising incomes comes greater spending power, increasing demand and pushing up property prices. Then there’s the current climate of low interest rates in the Eurozone, which has reduced the cost of borrowing money for overseas property buyers. Many of whom will be keen to cash in on Spain’s strong rental market, which is supported by its status as Europe’s most popular holiday destination.
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