According to R.R. Acuña & Asociados in their 20th annual assessment of the Spanish property market, the annual rate of increase in property prices will rise to around 5% by 2018, where it will remain until 2020.
Following a steady increase throughout 2016 which saw prices rise 2.3%, the report states that this trend will continue into 2017 predicting average prices across Spain will increase steadily toward 5% the following year, and possibly beyond as we reach the end of the decade.
Whilst on the surface it may appear that Spanish property might now be a sound investment, particularly with the availability of such low cost bank financing, it is important to note that the report also predicts the continuation of the wide disparity between Spain’s 17 regions and 50 provinces. The Costas and the largest metropolitan areas, where economic growth is most probable and the creation of jobs most likely, are regarded Spain’s healthiest markets.
Encouragingly the report also predicts increased investment in the construction of new build properties. In 2016 around 82,000 new build properties were built, however, in those areas where the market is expanding new housing stock is almost exhausted, therefore construction is expected to increase in order to meet demand.