The Spanish real estate market went through a turmoil during the 2008 crisis but is has recovered and is showing transaction levels seen before the crisis. Property prices are soaring slowly, but overall the market is showing good health.
A report by Spain’s National Property Register showed that close to 465,000 property sales or purchases were recorded in 2017 – a rise of 15 percent from 2016.
Since 2008, the economic crisis slowed down the Spanish economy, preventing many borrowers from paying back their property loans. Prices plummeted and showed recovery only after 2014. Since then the Spanish properties in Marbella and other attractive regions is once again attracting buyers from all over the world.
In 2017 Property prices increased an average of 7.6 percent. The prices are still 21 percent lower than 2007 prices. However, looking at the current scenario, prices of new homes and other regions is showing an upward trend. This can be associated with the strong economic growth of the Spanish economy which boosted the housing market.
The report also states that 13 percent of housing purchases were made by foreigners in 2017 led by British and French nationals. Touristy areas with wide options of new homes in Costa Del Sol, the proportion is higher, such as in the Balearic Islands where it stands at 35 percent and Canary Islands with 29 percent. According to the Spanish property portal Idealista, prices in Madrid grew by 12 percent in 2017.
Demand for Spanish Properties continues to rise, with house sales expected to rise by between 10% and 15% to reach about 550,000 transactions this year, according to TINSA.
Demand by Foreign investors continues to rise
Since 2014, the demand by foreign investors is rising. In 2017, foreign homebuyers bought over 61,000 homes in Spain, up from about 53,500 from a year earlier, based on figures released by Property Registrars, representing about 13.1% of all home sales in Spain, from 13.25% in 2016, 13.18% in 2015, 13.01% in 2014 and just 4.24% in 2009.
Brits remain the number one buyers followed by French, Germans, Swedish, and Belgians. The proportion of Romanian and Chinese buyers is also increasing. The Golden Visa Scheme has be given credit for bringing in investors from not only the Middle East but also from Asia and Russia.
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