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Banks Expect Spanish Property Market to Grow for Foreseeable Future
The residential property market in Spain is set to see a steady rise in home prices in the foreseeable future, according to the real estate branch of one of the country’s banks.
According to Solvia, the property division of Sabadell bank, average Spanish house prices will rise by 7.3% between now and 2020, although there is likely to be wide regional variations.
Meanwhile, another Spanish bank Bankinter is forecasting that house prices will have risen 4% by the end of 2017 and are set to increase by between 4% and 5% next year.
Catalonia and Madrid set for Economic Growth
Regions with the strongest demand and economies such as Catalonia and Madrid are likely to see the biggest rises and the Solvia forecast suggests increases of 11% and 14% respectively.
Solvia also expects sales to increase, predicting growth of between 7% and 8% each year until 2020 while Bankinter suggests transactions could rise even more quickly. Sales are likely to be strongest in Barcelona, Madrid, Seville, Malaga and Alicante, where demand is high.
Meanwhile, demand for property on the Spanish island of Ibiza is pushing up sales and homes are selling faster, according to the latest analysis report from Engel & Volkers.
‘Demand for high end residences on Ibiza remains significantly higher than the supply available. In addition, we registered a rise in average property prices in 2016,’ said Florian Fischer, managing partner of Engel & Völkers on Ibiza.
Strong International Demand boosts Spain’s Property Market
Ibiza benefits from strong international demand and last year Engel & Völkers brokered properties to buyers from 17 different countries. The report reveals that Germans top the group of overseas buyers, followed by British, French, Swiss and Italian buyers.
Ibiza Town is set to continue to be one of the most in demand markets on the island and redevelopment of the centre is due to be completed this year, while some of the most exclusive residential areas can be found in the south and southwest of the island. Properties vary here from contemporary designer villas through to traditional old fincas.
‘This year has got off to a great start and we are building on the positive sales growth of 2016. To date we are ahead of sales target and continue to see demand from a wide variety of international buyers who are looking for premium property often with sea views,’ Fischer explained.
‘Continued investment into the island’s infrastructure is key to meeting the demands of the high end market that Ibiza is renowned for. New local regulations and restricted building permissions in rural areas will protect the island’s countryside but also impact limited supply and push prices up,’ he added.