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Banks predict growth in Spanish property market

Friday 29th September 2017

Written by Roy Weatherby, The Overseas Investor

It is expected that the residential property market in Spain will see an increase in the price of homes – a prediction made by a leading Spanish bank.
The prediction has been made by Solvia which is the property arm of Sabadell Bank with it stating that it is expecting house prices to increase by 7.3% up to 2020 but this growth is likely to differ between regions.
According to Spanish bank Bankinter, it is predicting that the price of property will increase by 4% by the end of this year with prices expected to increase by another 4-5% during 2018. There are also regions that will experience strong demand such as Catalonia and Madrid and this will mean that prices are likely to increase considerably in these areas with prediction currently sitting at 11% for Catalonia and 14% for Madrid.
Solvia is also predicting sales number to rise between 7% and 8% every year up to 2020 but Bankinter is predicting and even steeper rise in sales. The likes of Barcelona, Malaga and Alicante are all expected to see these high increases due to the high demand.
On the Spanish island of Ibiza, demand is high and that has resulted in an increase in sales with homes selling at a pace according to analysis. In particular, high end residences on the island are in demand while supply cannot meet the numbers. It has also seen property prices rise during 2016. There are many international buyers who show an interest in property on the island with some property brokers providing property for buyers from 17 different countries. German buyers are at the top while British, French, Swiss and Italian buyers follow closely behind.
One of the most in demand markets on the island is Ibiza town as it starts to benefit from redevelopment which is expected to complete during this year. Many of the exclusive residential areas are located in the South and South West of the island and properties here can be seen in a traditional style or modern villas meaning that the location caters for all desires.
It has been a good year this year and the positivity surrounding the growth in sales can be built upon. Sales targets are being beaten and demand is continuing rise with many international buyers showing an interest in property that is priced at a premium because of its location.
It is important that investment into the infrastructure of the island continues as it needs to continue to meet the needs of the high end market which is what Ibiza is known for. The countryside of the island will be protected by new local regulations while restricted building permissions will also help to support this but this in turn will continue to hamper the lack of supply which will result in prices increasing.
For more information or to browse a range of Spanish properties, please contact Hopwood House.

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