Property prices could rise by 6% in Spain this year
According the 2017 Spanish Residential Report by CBRE Consulting, the average price of properties in Spain will rise between 4% and 6% this year.
During the last years the resale property market has kept a dominant role in the whole property sector, but the interest for new built homes is starting to arise seriously. In fact, prices will increase somewhat, up to 8%.
The consultant’s report highlights the crystallization of the recovery of the Spanish real estate sector but in a moderate way, since the construction of new housing reminds below the levels of the previous years to the economic recession. An example is the case of Madrid region, which is agglutinating 23% of the new housing offer and since the beginning of 2017 there has been a sharp increase in prices in new buildings. The housing market in the capital has acquired a “cruising speed”, and the reactivation has been conditioned by the strong impulse of the demand in the zones of greater purchasing power as a consequence of the adjustment of the prices of the previous economic cycle.
Considering a national perspective, another signal of the sector recovery is the increase in housing production.
Another interesting data included in the CBRE’s report is related with the property rental market. Spain is increasingly approaching the European average in terms of the percentage of households that live in lease. In fact, there is an annual growth of around 1.5%. Those who rent the most are the young, since they have a different mentality and are forced to opt for this type of housing due the low salaries in Spain and uncertainly of job positions. On other hand, investments in rental housing is growing, driven by the alternatives are not giving such high returns.