Property sales in Spain are currently enjoying a meteoric rise. The Spanish property market saw an increase of 12.4% on property sales in April and June of 2018 compared to the previous year. This figure of 134,196 properties sold is the highest amount since just before the financial crash in 2008 which saw 152,630 houses sold in the same period. All forecasts expect this rise in interest to continue, with there being as many as half a million properties sold by the end of the year.
The Spanish property market has been on the rebound since the enormous 2008 crash. Consumer confidence has increased, reflected in high sales and a sense of real optimism in construction and real estate.
However, it is not only the number of sales that is increasing, property prices are also on the rise. Since 2015, the Spanish property market has seen a price increase of around 10.7%, particularly on the price of new properties.
Why is the Spanish property market in such good health right now? One of the reasons people have given is that there is a renewed sense of optimism about the Spanish economy, both among Spanish people and foreigners that are thinking about purchasing. This newfound optimism is going some way to encouraging people to purchase, alongside current low interest rates and the hope that property values will rise even further.
Differences between the regions
However, not all is equal around the country. There are some regional differences worth considering. Property in Madrid, Barcelona and Alicante is performing very well but the same cannot be said of some other parts of the country.
The market figures can be seen divided up here:
- Madrid (20,128)
- Barcelona (14,155)
- Alicante (10,534)
- Malaga (8,730)
- Valencia (8,019)
- Sevilla (4,483)
- Murcia (4,290)
The growth of online rental companies such as Airbnb has also been a factor in the rise of house sales and prices around Spain. The rise in popularity of city break destinations, such as Madrid, Barcelona, Valencia, Alicante and Málaga regions, has helped increase purchases for short let purposes. Buy to let has become an investment, with an almost guaranteed high return.
What this means for you
For the average buyer and seller, this new confidence means things are beginning to change. Buyers are suddenly finding themselves in competition with other buyers for property and the best prices.
For the seller, it means that now is finally the time to come out of hiding and think about getting your property on the market. Those once put off selling by a sluggish market can be reassured by the amount of estate agents’ offices opening on the Spanish high streets. Once again, cranes signalling construction are back on the skylines of coastal destinations.
The Spanish property market is finally returning from the doldrums of recession, and is becoming an exciting and fruitful opportunity for buyers and sellers. However, it is important to make sure you take proper precautions with any decision. Take expert advice before you sign any contract no matter how excited you are to secure your ideal purchase or sale. We strongly recommend that you consider professional help before making any major commitment.