Booming tourism and a prospering economy are helping to drive Spain’s housing market, making 2018 an exciting year to be buying a property along the Costas, according to a raft of recent reports. The consensus amongst leading financial institutions, both Spanish and international, is that the Spanish property market will continue to grow steadily during 2018.
Ratings agency Standard & Poor’s (S&P), PricewaterhouseCoopers, Spanish bank BBVA, Spain’s Instituto de Práctica Empresarial (IPE) and property valuation firm Tinsa are all forecasting a hike in average house prices over the course of the year, with anticipated rises ranging from five to eight per cent.
At the same time, Tinsa predicts that the volume of sales transactions in Spain will increase by 10-15 per cent compared to last year. This is a continuation of strong volume growth in 2017, recorded as 13.5 per cent for the last three months of the year by Spain’s Association of Notaries.
This positivity in Spain’s property market is supported by the country’s strong economy, currently one of the best performing of all major EU countries. Spain recorded GDP of 3.1 per cent in 2017, the third consecutive year it has been more than 3 per cent, and this trend is expected to continue throughout 2018.
Spanish banks are lending more freely again, to both the domestic and non-residential foreign market, and continuing to offer attractive mortgage rates, thanks to the European Central Bank’s interest rates remaining low.
Throw into the mix Spain’s booming tourism industry, an important contributor to the country’s GDP and driver of property markets along the Costas and in the Spanish archipelagos, and it’s easy to see why confidence is high. 2017 was another record year, with 82 million tourists arriving in Spain, putting it ahead of the US for the first time and making it the second most visited country in the world after France. All signs point to Spain’s popularity continuing at a similar pace in 2018.
Together with Málaga in the Costa del Sol, Alicante and the Costa Blanca continue to spearhead Spain’s buoyant foreign property market. Alicante and the wider Valencia Community remain one of Spain’s busiest areas in terms of property sales to Britons, as well as buyers from wider Europe and Scandinavia.
The most recent figures from Spain’s Association of Spanish Registrars confirms the strength of the foreign market. During the first nine months of 2017, foreign (non-resident) citizens accounted for 13.1 per cent of all property purchases in Spain, including Spaniards. Looking at only the third quarter of last year, British buyers accounted for 14.8 per cent of all foreign transactions, more than any other nation. In second place were the French (8.5 per cent), followed by the Germans (7.8 per cent), the Swedes (5.9 per cent), the Belgians (5.7 per cent) and the Italians (5.6 per cent) and Romanians (5.6 per cent).
“2017 was a strong year for sales at HomeEspaña, and January started with a bang with more property enquiries than ever before – from an increasing number of different nationalities. We’ve bolstered our Scandinavian, German, Belgian and Dutch teams to cope with increased demand from the continent, and there’s been no let-up in visitors from the UK and Ireland. So don’t believe all you read in the press about Brexit! HomeEspaña has opened a new city office in Valencia, are expanding into larger offices in La Zenia, while Denia and Orba continue to attract a growing number of buyers. We look forward to welcoming more new friends to Spain in 2018!”
For more information, contact: [email protected]