The time has never been more ripe to invest in a property on the Costa del Sol.
Following a devastating financial crash that sent property prices plummeting by up to 30 per cent between 2008 and 2013, the Spanish economy has taken a remarkable turn and emerged as one of the fastest growing economies in the EU. Prices have risen by an average of 21 per cent since 2013 and the general consensus amongst government officials and reputable economists is that Spain has now entered a new post-crash era, with a rosy outlook for 2018.
According to a recent forecast by Anticipa, one of Spain's biggest real estate servicers owned by the international fund Blackstone, property sales in Spain will reach 536,000 units in 2018. That is a staggering 9.3 per cent more than the 481,000 transactions expected this year, and a 21% increase to 2016, which seems well within reach given the sharp rise in both national and international demand in Spanish property.
Given that the Spanish and wider Eurozone economies continue to operate as forecasted and approved mortgages continue to be obtainable, the majority of sales will be for resale properties and 275,000 will be for brand new developments. Prices for both property types are forecasted to have increased by 5.8 per cent in the fourth and final quarter of 2017 and by a further 5 per cent by the end of 2018, while still 23 per cent below their 2007 peak, meaning there are still plenty of bargain properties still available.
The forecasts are 85 per cent higher than in 2013, when just 285,000 homes were sold in Spain. Presented at Barcelona Meeting Point by Anticipa’s managing director Eduard Mendiluce and Josep Oliver, a lecturer at the Universitat Autonoma de Barcelona (UAB), whose team compiled the report, the market is still 42% below its peak of over 900,000 sales in 2006.
By the end of 2019, the report expects a total of 63,400 building completions on new developments a small rise compared to 2017, with 62,900 and well below the peak reach during the boom years. However, figures do show a significant increase in relation to 2016 when just 42,700 new homes reached completion, a 48 per cent rise.
Growth will continue towards an average annual rise of 2.5% in 2018 and 2.1% in 2019, sustained by an increase in private consumption and both national and international demand for Spanish property.