Spanish property prices set to skyrocket
01 December 2016
International demand for property has driven the recovery of the Spanish property market through 2016. With sharp price increases predicted over the next 3 years, 2017 looks to be a great time to buy a property in Spain.
Recently compiled figures from notaries across Spain have shown that in the first half of 2016 Spanish property experienced a 19.7% rise in demand from overseas buyers - which now accounts for approximately a fifth of the country’s total demand for property. This is a dramatic rise from 2008, when foreign buyers made up just 6% of the Spanish property market (Source: Euro Weekly News).
Buyers from the UK still make up the largest proportion of Spain’s overseas property buyers, with France, Germany, Sweden and Italy all following behind.
Spain’s property market has been recovering for a while now, with figures showing year on year increases in 28 of the past 30 months (Source: Spanish News Today). The latest property sales figures published by the National Institute of Statistics (INE) show that the number of transactions registered this September was 13% higher than in 2015, continuing the recovery, that began in 2014.
International buyers have played a significant role in supporting the Spanish property market through its recovery, but now this overseas demand is further accompanied by increasing domestic demand in line with the improving Spanish economy.
Humphrey White, the British head of Knight Frank in Spain, recently stated “property prices in Spain will see increases of approximately 6% per annum until at least 2019, on the back of growing demand from buyers and a strengthening economy.”
While the market recovery looks set to continue, prices in Spain are still significantly lower than they were during the peak of 2006, with some industry data indicating some regions are still 30-35% below their peak prices.
This combination of low prices, growing demand and ongoing value increases make 2017 a prime time to purchase property in Spain.
Whether you’re looking for your dream home in the sun, or an investment property, Select Resorts Properties has an outstanding variety of Spanish property options available, in some of the country’s most popular destinations. Contact our sales team on +44 (0)1202 765011 or email [email protected] for more information.