The Spanish real estate market
went through a turmoil during the 2008 crisis but is has recovered and is
showing transaction levels seen before the crisis. Property prices are soaring
slowly, but overall the market is showing good health.
A report by Spain’s National
Property Register showed that close to 465,000 property sales or purchases were
recorded in 2017 – a rise of 15 percent from 2016.
Since 2008, the economic crisis
slowed down the Spanish economy, preventing many borrowers from paying back
their property loans. Prices plummeted and showed recovery only after 2014.
Since then the Spanish properties in Marbella and other attractive regions is once again attracting buyers from
all over the world.
In 2017 Property prices increased
an average of 7.6 percent. The prices are still 21 percent lower than 2007
prices. However, looking at the current scenario, prices of new homes and other
regions is showing an upward trend. This can be associated with the strong
economic growth of the Spanish economy which boosted the housing market.
The report also states that 13 percent
of housing purchases were made by foreigners in 2017 led by British and French
nationals. Touristy areas with wide options of new homes in Costa Del Sol, the proportion is higher, such as in the Balearic
Islands where it stands at 35 percent and Canary Islands with 29 percent. According
to the Spanish property portal Idealista, prices in Madrid grew by 12 percent
in 2017.
Demand for Spanish Properties continues to rise, with house sales expected to
rise by between 10% and 15% to reach about 550,000 transactions this year,
according to TINSA.
Demand by Foreign investors continues to rise
Since 2014, the demand by foreign
investors is rising. In 2017, foreign homebuyers bought over 61,000 homes in
Spain, up from about 53,500 from a year earlier, based on figures released by
Property Registrars, representing about 13.1% of all home sales in Spain, from
13.25% in 2016, 13.18% in 2015, 13.01% in 2014 and just 4.24% in 2009.
Brits remain the number one
buyers followed by French, Germans, Swedish, and Belgians. The proportion of
Romanian and Chinese buyers is also increasing. The Golden Visa Scheme has be
given credit for bringing in investors from not only the Middle East but also
from Asia and Russia.
