Looking at the Spanish property market in recent months, it’s great to see such positive growth. The Spanish Registrar’s Association published data last month showing that last quarter’s residential property value rose by 9.4%, as compared to the same quarter last year. This is in line with the consistent growth seen over the last few quarters.
The data has shown that the average national property value in January and March this year crept up to 4.5% more than October to December of last year. With almost 129,000 property transactions in this year’s first quarter, the data indicates a 15.3% rise on the last quarter of 2017. Since 2008 there hasn’t been a quarterly sales volume that comes close.
Positive growth in Spain continues across the board
These figures show a noteworthy increase that is indicative of probable positive growth ongoing. This projection is further supported by the high number of new building projects underway, which far outweigh those of previous years.
Investment bank BBVA recently issued an economic growth forecast predicting a 2.9% rise in Spain’s GDP. Previous forecasts estimated only 2.5%, which is also in contrast with Spain’s Government’s earlier projection of 0.2%. BBVA predicts even more growth into next year, estimating that GDP growth should reach between 2.5 and 2.7%.
Meanwhile, the unemployment rate in Spain dropped further, indicating even more positive changes for the economy. The BBVA predict that by the end of this year, Spain’s unemployment rate will have decreased by approximately 1.4%. This is great news for Spain’s population, as thousands more people should find it easier than ever to obtain stable jobs.
Property industry experts back these forecasts
BBVA bank and are not alone in their encouraging projections, either. Taking a look at the insights from property industry experts CBRE, we see further evidence that Spain’s property value is likely to keep on climbing. Dubbed ‘high growth perspective’, these positive changes are showing no signs of abating. Property rises will increase, but transactions will increase with them. It seems that we are looking at increases of between 6 and 8% over the next few years.
CBRE are reporting a demand for property that may even overshadow supply, so if you’re thinking of a move to the Costa del Sol, now is a very good time to do it. The same goes for those with a maximum budget. Investing in a Spanish property now could mean not overstretching your budget at a later date, and securing a home that will continue to increase in value over the coming years.
Property prices in the Málaga province are predicted to rise by up to 10% by the end of this year, if the recent CBRE analysis is correct. What’s more, they anticipate a further 6% average increase each year on residential properties, from 2019 onward.
Putting the price increases in perspective
For those not yet ready to buy, such data might appear to be a little worrying; however, the same report will put your mind at ease. It posits that the price resurgence happening in Spain is not reminiscent of the boom and bust phase of 2007 and 2008; it is simply a natural result of improved economic conditions and can be viewed as healthy growth.
This perspective is supported by the fact that so many property developers have taken up projects designed to meet the increased demand for residential homes; new-build home licenses have gone from 80,000 units to around 100,000. These projects are necessary, but of course will have an impact on the statistics being released at the moment.
Spain’s popularity never really wavers
Whichever way you look at it, living in Spain continues to be an absolute necessity for not only Spaniards, but also a high number of expats from all around the world. To clarify that point, Spain is home to the largest group of UK citizens living in the rest of the EU. Here we have around 309,000. The second most popular choice is France, with around 157,000. As you can see, Spain is way ahead in the popularity stakes.
Now that property prices are increasing significantly, it would be a prudent move to invest in your dream property on the Costa del Sol some time soon. Right now there are plenty of properties for sale on the Costa del Sol, yes, but with more and more demand, there could be less choice if it’s left to fate.
Paradise Marbella is a leading Costa del Sol estate agency with a difference. Talk to our friendly team to find out why we should be the ones to help you realise your Mediterranean dreams.