As we all are well aware, the property market in Spain is in a phase of recovery. Investing in real estate in this country has even become attractive for investors once more.
Many experts in various fields directly or indirectly linked to the property market are keeping a close eye on what’s happening with prices and sales in various parts of the country and as a whole.
Bankinter, one of the banks in Spain that was least affected by the property crisis, has calculated that house prices will moderately rise all across the peninsula and on the islands as well.
The recuperation of property prices began in the cities of Madrid and Barcelona and then extended to other major cities in Spain.
According to data published by the Department of Public Works, house prices have gone up by approximately 2.4% between March 2015 and March 2016.
The regions in which prices increased the most during this time are: Balearic Islands (9.6%), Catalonia (4.9%) and Madrid (4.2%).
House prices have only dropped in the following regions from last year: Aragón (-0.6%), Cantabria (-1.3%), the Basque Country (-1.9%), La Rioja (-2.1%) and Ceuta and Melilla (-0.3%).
On a national scale, house prices have continued to rise since the end of 2014, and this has been speeding up since the beginning of this year.
In its biannual report on the property market in Spain, Bankinter has forecast that the demand for residential property will increase over the next 18 months, to reach a volume of 470,000 sales a year in 2017. This is great news for anyone wishing to sell. We have already seen that the time it takes to sell a property in many areas is being reduced by around half.
And it is all being helped along by an improvement in the economy, low interest rates and good yields from renting property.
Bankinter has calculated that house prices should go up by around 3-5% annually as a result of the renewed demand for property and lack of new builds in popular parts of the big cities.
Due to this shortage of new property, the number of licences approved for new constructions has begun to rise as well, which is a positive sign for the construction sector.