Spanish home sales showed a year on year rise of 11% in September 2018 according to a report by the National Institute of Statistics (INE), showing a continued expansion of the property market through Q3.
A total of 38,621 Spanish property purchases were inscribed in the Land Register in September, 42,766 including subsidised homes (known as VPO). Amid a significant surge in new property developments across the country, new home sales went up by 14% to 8,016 compared to the same month the year before, and resales rose by 10% to 34,750.
Home sales remained strong across most regions in high demand with foreign investors, with the exception of the Balearic and Canary Islands which saw figures fall, possibly attributed to the shortage of properties for sale and/or attractive pricing.
Regions with the most significant year-on-year rises in home sales in September were Asturias (36%), Murcia (21%) and Andalucía (19%). In the region of Andalucía, which includes the Costa del Sol, Malaga also saw a 10% increase in home sales, a small indicator of the massive resurgence the city has experienced on all fronts in recent years.
The property market in Spain is set to remain buoyant in 2019 with one firm predicting that prices could rise between 5% and 7% in 2019.
The data from valuation firm Tinsa also shows that house prices rose 5.6% year on year nationwide in November and it is predicting that sales will increase from 500,000 to between 625,000 and 650,000 going forward.
As well as property sales, it is predicted that the number of building licences awarded will grow in a similar fashion and will reach 100,000 to 125,000 in 2019. But the figures also point out that prices are still 36% lower than the level reached before the financial crisis in 2006 and 2007.
There are also likely to be regional variations with the larger cities likely to see the biggest property prices rises while growth in coastal regions could be smaller.
It also expects the number of foreign buyers to rise. Indeed, figures from Spanish Notaires show that 53,359 homes were bought by overseas buyers in the first half of 2018, much higher than the previous record high of 33,000 sales recorded in the same period of 2007 when Spain's property market was at its peak.