In keeping with BBVA's forecasts earlier this year, Spain's second biggest bank has published a report noting a healthy Spanish property market with a projected increase in sales transactions over the coming months.
In its periodic Spanish Property Trends Report, the research division of BBVA expects around 500,000 home sales this year, a double-digit increase on last year.
According to data from the Spanish Notary Association cited by BBVA, almost 265,000 properties were sold in the first half of 2017, representing a year-on-year increase of 15.5%. Incentivised by the economic recovery and low mortgage rates, the Spanish property market is on course to reach or even exceed BBVA's forecast of 500,000 home sales this year.
In June of this year, 51,477 properties were sold in Spain, a 17.4% increase in the same month the year before, and up by 5.4% compared to the month before. The increases in sales transactions go hand in hand with the growing Spanish economy, according to the report. Spain's GDP went up by 0.9% between January and June, with almost 377,000 new jobs created in the first seven months of the year. Consumer and industrial confidence also remain at historic highs.
Low mortgage interest rates are also cited in the report as important indicators of the growing market. Average new mortgage loan interest rates were at just 2.2% in July, another record low that has drawn new buyers to the thriving Spanish property market.