Are you planning to sell property in Spain online in 2017? Things have changed quite a lot in the Spanish property market over the last couple of years. The national economy has turned a corner and the real estate industry is full of confidence. It has been buoyed by a fast improving economy, a stable government at the centre and higher foreign investment than ever before.
This is a big change from the years of economic recession that lasted from 2007 to 2014, during which property prices fell by 42% non an average nationally.
This year, apartment prices in Madrid and Barcelona have been up by 7 percent and 9 percent, while nationwide property sales are up by 10 percent. As Fernando Encinar of property portal the Idealista says in an interview with the Financial Times, “From 2010 to 2012, international investors didn’t want to touch the Spanish market with a stick. We’ve passed from a brutal lack of trust in the Spanish economy, to now when you speak with investors they say ‘give me yield’.”
The market recovery has happened in several stages. The first upturn in the Spanish real estate market was seen in 2013 in a few regions such as Marbella. Marbella has always been a very popular overseas property hotspot which has been relatively insulated from the worst effects of the property market crash.
During that time, many smart, sophisticated international property hunters looked for high-risk investments in Spain, hoping that it would pay off big time when the market bounced back in a few years time. It certainly worked out that way for many cash rich overseas investors.
Some of the world’s biggest real estate investors such as Goldman Sachs, Blackstone and Cerberus Capital Management are already investing in a big way in Spain.
Miguel Pereda, CEO of Grupo Lar, a shopping chain in Spain says, “There’s been a clear recovery of consumption in Spain, as well as a drop in unemployment.” He adds that sales at his stores are up by 9.2% this year, which points to the higher consumer confidence across the country.
A top real estate developer who preferred to remain anonymous told Financial Times, “After six years of being a taboo topic in economic circles, real estate developers are being invited back into the official cocktails. The stars are lining up again.”
Kate Everett-Allen of Knight Frank says 2016 has been a very good year for Spain: “Spain’s economy is recovering well with GDP forecast to reach 2.5 per cent in 2016, outperforming the UK and Germany.”
Ms Everett-Allen adds that the property market in Spain is doing well despite Brexit: “While the referendum will undoubtedly influence buyers’ decisions when looking to purchase in Europe’s key second home destinations, it will be one of several factors they will consider, including underlying market conditions.”
Spain is not only one of the best overseas property destinations in the world; it is also a very undervalued housing market, compared to the UK or USA. And now, after a prolonged spell of recession, it is picking up. This is good news for you, whether you’re looking to sell or buy property in Spain online.