The outlook for the Spanish property market in 2018 is positive according to the leading real estate valuation company Tinsa who are predicting widespread and sustained growth in their forecasts for the coming year.
Having already reported 4.2% average price rises for residential property in Spain during 2017, the real estate experts are predicting similar rates of steady growth for 2018 as international investors, foreign property buyers and perhaps most importantly young Spanish homebuyers increasingly enter the market.
According to the head of Tinsa’s studies team, Jorge Ripoll, the greatest growth will once again be witnessed in Spain’s larger cities, islands and key coastal regions such as the Costa del Sol. However with rental prices in Barcelona and Madrid close to reaching their ceiling, it is expected that price rises in the two metropolitan centres will slow.
Additionally Tinsa expects the number of property sales transactions in 2018 to grow between 10% to 15% compared to last year, which means we could see over 550,000 Spanish home sales during the next twelve months. Whilst this may be well short of the 900,000 homes sold during the peak of 2006, it is a great improvement on the 300,000 sold just four years ago, and more importantly is an indication of sustainable market moving in the right direction.
In line with growth in property sales, the number of mortgage loans granted to finance property purchases is also expected to increase a similar amount. Similarly the new build sector is expected to increase with the number of new construction licenses granted in 2018 predicted to reach 100,000 which would represent 20% growth.