According to BBVA Research, the Spanish property market recovery will be consolidated by the end of this year and will continue into 2017 with property sales forecast to increase 6.5% while average prices are set to increase by 3.5%
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Despite Spain’s recent political uncertainty, the latest report from the analytical arm of one of Spains leading banks suggests that in the medium-term the outlook is positive with the property market set for stable and steady growth, mirroring that of Spain’s economy.
Increasing confidence and demand is also expected to help drive the continued recovery of the property construction industry with 70,000 new building licenses forecast to be issued in 2017, an increase of 40% on the previous year.
Should these predictions prove correct, average Spanish property prices will return to those last seen in pre-boom 2004. However, unlike the unsustainable market explosion seen in 2005, analysts now expect to see a healthier pattern of growth as interest rates remain low, holding economic expansion within manageable levels and setting a solid foundation for continued market recovery in years to come.