Analysts from the world’s largest real estate services firm Caldwell Banker Richard Ellis (CBRE) have forecast that the average market value of Spanish property could rise as much as 6% during this year.
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Alongside these forecasts CBRE are also predicting a revival of the new build and off plan property market in Spain with demand expected to reach 120,000 to 140,000 per year by 2018. During recent years second hand homes have dominated the Spanish property market however, according to their report, the demand for off plan property has returned, albeit to a lesser degree than the pre-2008 boom years.
The report does point out the continued disparity amongst Spain’s 17 regions with the strongest price increases being seen in the regions with traditionally the highest demands for property including the larger cities of Barcelona, Madrid, Valencia and Málaga along with Mediterranean coastal regions such as the Costa del Sol.
CBRE also identified a 1.5% growth in demand for rental property, leading to an upturn in interest from buy-to-let investors, tempted by returns averaging 5% in the stronger property markets.