The year 2017 will be even better than 2016 for the real estate market in Spain both for sale and for rent.
It still lacks a few days to finish the year 2016 which proved to be the year of the return to the strong growth of the real estate market for the sale as well as the renting, and this in all the sectors, commerce, offices And residential. And for several reasons:
A return to very high growth in Spain (+ 3.2%)
Historically low interest rates
Spain still has low real estate prices relative to other countries, especially when comparing prices in the major Spanish cities of Madrid and Barcelona with those in the European capitals
The strong growth in investment by large foreign investors and foreign families and individuals
Image courtesy of SpanishSun
So what about 2017 in the field of residential real estate?
Everything looks good and even beyond: Spanish households’ confidence is at their highest level in 8 years, foreign investors (individuals and funds, in particular the US) confirm their willingness to continue buying real estate in Spain, Growth forecasts are excellent among the best in Europe, prices are still at a low level still lower than they were in 2007, tourism activity is expected to increase further with the abandonment of North African and Turkish destinations by European tourists, interest rates will remain low (even if we can envisage a 0.5% increase over the year), industry leaders recommence to invest in new construction programs, etc.
Geographically, demand will still be very large and therefore higher prices in Madrid, Barcelona, Malaga and the Balearic Islands. Other cities that have very high potential in view of their very low price should benefit from this recovery, one can quote Valladolid and Zaragoza.
Our assumptions for Spanish residential real estate in 2017:
Increase in selling and rental prices by 5 to 15% depending on the area, with the largest increases in the apartments for sale in Spain in the center of the major cities (Madrid and Barcelona), and the lowest in rural areas Inside
Prices for luxury real estate in Madrid and Barcelona (real estate valued at more than € 1 million) will increase by more than 20% under the impetus of foreign demand
25% increase in the number of real estate transactions to 600,000 units
The real estate boom will expand to areas other than major cities or islands
Tourism construction will rebound sharply
Spanish banks will once again facilitate access to mortgages