Current economic conditions, including national and local forecasts, all suggest steady growth into the foreseeable future. The real estate market is set to continue in good health however prices will increase at a slower pace, while staying noticeably ahead of inflation.
This year Malaga and the Costa del Sol along with Madrid, Bilbao, Valencia and Barcelona have seen increases of 8% year on year, beating the national average of 5%
Last year we saw moderate growth both in prices and sales and in the rate of construction with more than 500,000 real estate transactions and we expect a similar number of transactions this year with new builds accounting for more than 15% of total sales.
Currently we have more than 200 new construction projects to choose from on the Costa del Sol totalling over 11,000 homes and these are matched in the volume of demand, particularly from foreign buyers, mostly Europeans, who continue to show significant interest in investing in Spain.
In fact, foreign buyers currently account for nearly 15% of transactions in the whole of the country according to the Land Registry. The Brits lead the way closely followed by the French, Germans and Scandinavians, showing a clear resilience of the British market to the effect of Brexit and the relative weakness of the Pound Sterling.
With more property owners than ever looking to rent their Spanish properties to generate income, it’s welcome news that the rental market is also enjoying a steady upturn with increased demand and higher prices being paid than previously, especially in the luxury sector. This is a good time to invest in a Spanish rental property. Low interest rates and premium rents are a good formula for your real estate portfolio.
Whilst we are in the stability phase of the real estate cycle, it’s a great time to buy with prices still far from their 2006 peak yet sales volumes back to pre-crisis levels – a great opportunity for long term financial gain.