Sales of spanish property are predicted to hit 440,000 according to the financial advisory firm KPMG. The forecast would mean an increase of 12% in sales on 2015 and would also signify a continuation of the growth trend which has been evident over the last couple of years.
The company also forecasts investment volume to rise by 10% from €18,000million to €20,000million and sees 2016 as being another year which will consolidate the recovery of the Spanish property sector.
Deloitte, another of the ‘big four’ financial advisory firms is also positive about the evolution of Spain’s property market in 2016 and the Spanish Financial Advisory Partner Alberto Valls has stated that sales will carry on increasing driven largely by investment firms who are seeing property as an attractive asset class due to the extremely low interest rates.
All major indicators pointing up
Low interest rates are also pushing up sales to individuals due to the impact this has on mortgages. This is currently combined with strong levels of job creation and a growing Spanish economy which has posted 0.8% growth for the last three quarters.
Valls also pointed out that the concession of mortgages, although rising, has still not taken off as many predicted it would do in 2014. This leaves slack in the market for further improvements as the increasing confidence of the banks will lead to higher concession rates and will further boost sales.
In the end it is more good news for Spanish property and reflects the fact that most market commentators are now unashamedly optimistic on the near and mid-term future of the sector.
Main image: An artist’s impression of the Los Altos de Alicante development on the Costa Blanca © TM Grupo Inmobiliario