Property values in cities like Madrid, Valencia and Malaga are expected to go up by as much as 10% by the end of 2018, according to a new report by industry experts CBRE.
Amid a flurry of positive reports by property analysts, CBRE foresee a steady upward trajectory for the Spanish property market. Backed by national and international demand surpassing supply in a flourishing economy, property prices are expected to continue to increase in large cities and prime coastal areas.
The CBRE report forecasts a continued and moderate growth from 2019 onwards, with an expected 6% overall increase in prices year by year. Quarterly and annual price hikes that confirm the healthy growth rate of the Spanish property market, figures that are in stark contrast to the exponential and unsustainable growth that was seen before the economy crashed in late 2007.
New-build home licenses have increased from 80,000 to approximately 100,000, as a result of large property developers returning to the market in force to meet the increase in interest. After an impressive first quarter, property transactions are expected to easily surpass 575,000 by the end of the year, representing an 8% increase on the registered figure in 2017.