According to a new property market analysis conducted by leading bank BBVA, 2017 is forecasted to be a positive year for the real estate sector in Spain. With a projected 2.5% rise in Spanish property prices in 2017, BBVA expect conditions to see further improvement and stability within the real estate sector over the coming year.
The analysis attributes an improving economy and a reducing stock of unsold homes as the main characteristics which will further fuel property prices in 2017. The Spanish GDP is projected to rise by a further 3% this year, and while mortgage interest rates remain low and unemployment drops, BBVA expect to see a significant rise in national demand - as well as a continued surge in foreign buyers.
The number of sales transactions will also increase this year, though according to BBVA not as sharply as the 13.5% additional sales recorded in 2016. However, the number of residential properties sold in Spain in 2017 is projected to reach half a million, further aiding the construction sector and fuelled by easier access to financing via Spanish mortgages. BBVA expect mortgage interest rates to rise by 2018 which is likely to have an impact on the proportion of sales financed by Spanish lending institutions.