Spanish property sector tipped for sustained growth in 2017
As analysts look back on a year characterised by widespread increases in Spanish house prices – including a 3.3% rise in the price of new-build properties – there has also been much optimism expressed about the country’s 2017 prospects.
Last year was universally hailed as a positive one for a national real estate market that had struggled for years in the aftermath of the late 2000s recession. Now, it seems that sustained growth is on the cards for the coming 12 months – the rosiest prediction coming from academic Gonzalo Bernardos, who has suggested that average prices could go up by a stellar 13%.
Predictions of healthy house price rises
While other predictions across the Spanish media have been more modest than that of Bernados, they nonetheless paint a consistent picture of steadily rising home values and property market activity over the coming 12 months.
While both the Spanish Association of Value Analysts and appraisal firm Tinsa have suggested an average house increase of no more than 2% over the year, consultants R.R. Acuña & Asociados have forecast a rise in average prices from +2.3% in 2016 to +5% in 2018, with this rate of growth remaining for the rest of the decade.
The BBVA bank has pointed to average property values potentially heightening by 3.5% over the coming year. This is in similar territory to the maximum rise of between 2% and 4% predicted for provincial capitals by Borja Mateo, a housing market analysis who is a familiar presence in the Spanish media. Included in his predictions are a 7% maximum rise for Barcelona and a 4% maximum increase in Madrid.
Reports have suggested that the resurgence in property values currently being seen in Madrid, Barcelona and certain other touristy coastal areas will extend to the suburbs and other parts of the country in 2017. Such news will be welcomed by many more people than merely those seeking high end Marbella villas, apartments and penthouses.
Other indicators bode well for house-hunters in Spain
Whatever key Spanish property sector indicators one looks at for 2017, they appear to be positive ones. The valuation company ST Sociedad de Tasación recently revealed a 3.3% heightening in the price of new Spanish properties over the course of 2016, including a 1.9% rise in the second half of the year. Looking to 2017, Tinsa expects between 75,000 and 80,000 planning approvals, which would mark a 15% to 20% increase.
Indeed, another real estate consultancy has forecast that planning approvals will reach 150,000 per annum over the next three years, while Bernados has placed this figure as high as 175,000. Meanwhile, servicer Servihabitat has suggested that the year could see a 20% fall in the inventory of new homes never sold, to 388,000 – another indicator of the ever-heightening demand for Spanish property.
Tinsa has also signalled that it anticipates home sales of between 520,000 and 545,000 in the country during the year, or a 10% to 15% rise, along with 425,000 to 450,000 mortgage signings. This compares to Bernados’ prediction of a 25% rise in home sales to 600,000.
Meanwhile, the servicer Soliva has stated that more than 40,000 new rental contracts will be signed during the year in both Barcelona and Madrid, with other popular areas – such as the Balearics, Valencia, Malaga, Seville and Alicante – attracting between 3,000 and 7,000 each.
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Such figures should be firmly encouraging ones for all of those contemplating the purchase of the most desirable and opulent Marbella properties in 2017. Why not enquire to IQ Marbella today about our top-to-bottom service that will enable you to land the new Andalucía home or investment property to which you have always aspired?