BBVA expects Spanish property prices to go up by 2.5% this year
The now-infamous Article 50 has finally been triggered by British Prime Minister Theresa May, getting the formal procedure for the UK’s departure from the EU underway, which one may have thought would have a chilling effect on the Spanish property market.
However, overall conditions would still appear to be highly favourable for continued growth in prices, sales and activity in the Spanish property sector, the BBVA bank having stated that it anticipates a 2.5% average rise in the values of the country’s residential property during 2017.
Higher prices, higher activity and more mortgages
The bank said that a lower amount of unsold stock, reduced unemployment and still-low mortgage interest rates would all play their part in driving up demand and prices.
It is also thought that the property market’s level of activity will increase again in 2017 after strong growth over the course of last year. BBVA has said that there could be 7% more sales this year than in 2016, which would equate to almost half a million transactions over the 12 months.
The aforementioned factors are also likely to lead to more mortgages being granted for the financing of property purchases, with the combination of low interest rates and greater household income enabling more people in Spain to buy a home. Of course, it is also unlikely that high net worth investors will be put off by such positive conditions in which to invest in a Marbella home.
Such a positive picture has been further supported by the release of a report by leading property valuation firm Tinsa, which found that the average price of Spanish housing during 2017’s first quarter was 1.8% higher than in the equivalent period last year.
British buyers still in love with the Costa del Sol
In an article entitled “The Costa del Sol welcomes you” for the leading English newspaper in Spain, EuroWeekly News, columnist John Smith explained the continued appeal of the region to British buyers, observing: “Mention Spanish property to a number of British people and it is more than likely that they will quote names from the Costa del Sol.”
Smith continued that while Britons may have first fallen in love with Spain at the emergence of the first package holiday tours, there remained “a huge range of property” in the region and “a lot of new property being built.”
He added: “One sign of a strong market is the number of estate agents who are in business and it is fair to say that there are considerably more opening than closing as this is an area that offers incredible recreational opportunities such as golf and water sports together with great bars and restaurants of all types.”
Brexit not necessarily a disaster for Spanish property market
For all of the concerns that have been raised about the UK’s impending departure from the EU having a potentially detrimental effect on the Spanish property sector, British buyers still account for about 16% to 17% of all Spanish property sales to non-Spaniards as of the last three months of 2016, according to data from the country’s property registrars and notaries.
While there has been a fall in the number of Spanish property sales to British purchasers as of late, the number of enquiries from the UK remains steady. It suggests that actual interest from Britons in Spanish property remains undimmed, even if many are taking a cautious “wait and see” approach as it remains to be seen how the UK’s looming negotiations with the EU play out.
During this period of relative uncertainty for high net worth Britons considering making Spain their home, it could not be more important to partner with the most reputable estate agency – one that deals solely with the most sought-after, premium properties.
Here at IQ Marbella, we do precisely that for the Marbella area of Spain, and are ready and waiting to serve you and your requirements, alongside the rest of our high net worth investors who constitute our valued clients.