Amid a continued resurgence in the Spanish property market in 2018, predictions for 2019 remain significantly optimistic across the board.
Basing their findings on current figures and trends, leading Spanish property valuation firm Tinsa has forecasted an average rise in market value of between 5 and 7 per cent in 2019. Increased demand, falling unemployment and a rise in building licenses issued, sales and mortgages granted will continue to see through recovery across the country.
House prices across Spain rose by 5.6% year on year and Tinsa forecast that sales will increase from 500,000 to between 625,000 and 650,000 moving forwards. Building licenses granted will also rise from 100,000 to 125,000 in 2019.
The Tinsa report also addresses and squashes fears of another boom and bust cycle, recognising that significant regional variations in pricing remain, and that prices still remain 36% lower than levels reach before the financial crisis hit in 2006.
Large cities like Barcelona and Madrid tend to show more significant rises, coastal areas are showing moderate rises and less popular regions have barely seen price rises at all since bottoming out. As the market continues to stabilise the recovery is forecasted to spread to more areas. In the meantime, there are still a huge number of lucrative property investments under €250k to be snapped up.
Spanish bank BBVA also expects the number of foreign buyers to rise, backed by Spanish Notary figures showing 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 at the markets peak. Regions popular with foreign investors such as Mallorca, Ibiza, Costa Blanca and the Costa del Sol are forecasted to continue to attract buyers from Germany, France and Scandinavia in 2019, though the movements of British buyers will depend on the outcomes and impact of Brexit.
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