Spanish property market shows recovery
The crisis of the Spanish property market seems to have finally come to an end. Year after year, from 2007 until 2015, the Spanish property market suffered from devaluation. Finally, it turned in 2016, when there was a slight price rise (1,6%), that became stronger in 2017 (4,4%) and seems to increase even more in 2018 (6%).
Spanish property market shows increased demand
The demand for Spanish property shows a strong increase. In 2017 the number of sales rose to 464.423 properties, which represents a growth of 14,6%. This growth is mainly due to the demand of foreign buyers. Approximately 60.000 houses in Spain were purchases by foreigners. Especially the “Costa´s” and the large cities, like Barcelona and Valencia, are popular amongst the foreign buyers/investors. Most foreign buyers come from Engeland, Germany, France, Belgium, Italy, Sweden and The Netherlands.
Spanish property market in the Valencian Community and Alicante
In the whole of Spain relatively many houses are being sold to foreigners. The annual percentage is around 16%, meaning that 1 of every 6 buyers is non Spaniard. In the Valencian Community, in Spanish referred to as “Comunidad Valenciana”, consisting of the provinces Castellón, Valencia and Alicante, the part of the foreign buyers is even larger, 26%. In Alicante it is even higher, between 40 and 45% of all property is being sold to foreigners.
Spanish property market, a prognosis
My personal prediction is that the Spanish property market will reach some stabilization. The interest of the foreign buyers will remain growing, however internal Spanish factors will act as barriers for more sustantial growth. Once again Spain has a weak government, the Catalonian independent issue is still not under control, less tourists are coming to the country, internal consumption growth has declined, Brexit is an issue and most probaly interest rates will rise.