A new forecast predicts that property prices across Spain will rise by 5 per cent by the end of this year.
A report carried out by analysts at Spain’s BBVA bank predicts that not only will property prices rise across the country, but the number of sales will also increase. However, they are confident that there will be no repeat of the boom and bust cycle that decimated the country’s property market a decade ago.
Not only are the BBVA forecasting a 5 per cent property price increase, but they are also predicting that the number of property sales made across the country will reach 670,000 – a 7 per cent increase over last year.
The number of building licences being granted for new properties is also increasing – although at nowhere near the level seen in the mid-to-late noughties. It is this factor that the BBVA believes will help the country avoid a property price crash this time around.
Building is now more sustainable, and the majority of started projects are being completed. This wasn’t the case ten years ago when many developers overstretched themselves financially and ran out of money before they could complete their projects.
Recent statistics released by Tinsa showed that property prices across Spain rose by 5.4 per cent year-on-year in April. This was the largest increase recorded in the month of April for 11 years.
The situation in the country’ larger cities is even more promising, with prices in major cities rising 8.7 per cent.
Article published 15th May 2018