2016 was a positive year for the property market in Spain. Spain was one of the few countries in Europe that got a lot of things right. So what does 2017 have in prospect for Spain? You might want to know if you’re looking to sell property in Spain in 2017.
The Spanish real estate market will be largely driven by international buyers, as always. The overseas interest in Spain is expected to be high, in spite of Brexit.
The last 12 months have seen Spain once again become the most favoured overseas property market in the world. Mariano Rajoy was sworn in as the Prime Minister of Spain, following a prolonged period of 9 months, during which there was no government at the centre.
Fortunately, things seem to have changed in Spain as far as the political situation is concerned. The markets can now look forward to stability at the top.
However, there are concerns that remain in 2017. The UK is all set to formally begin the process of exiting from the European Union. This could lead to a few shocks in the system, and it remains to be seen whether Brits would be as involved as buyers in the Spanish real estate market as they have been for so many years, during this phase.
Also, there will be elections in France and Germany, and nationalist forces that want out of Europe are on the ascendency in both countries. So this could certainly have repercussions for the overseas property market as a whole, of which Spain is a part of.
Interestingly, the price increases in Spain have moved beyond Barcelona and Madrid and now can be seen in most of the second-tier markets, such as Costa del Sol, Valencia, Murcia, Andalusia, Canary Islands and the Basque Country. Demand is expected to be high in Andalusia, Valencia and Costa Brava, in particular, where there have been a number of new real estate developments.
Spain has been helped by the fact that it is one of the fastest growing economies in the Eurozone, has low financing costs and a very promising rental market.
Spain is one of the most connected countries in the world; there are flights to various cities in Spain, especially to Barcelona and Madrid, from almost every major city in the world. British Airways and the Norwegian Airlines are planning to start new low cost flights to Spain. So 2017 should be a record year for Spanish tourism, just as 2016 was – with tourist inflows of over 72 million.
While it is true that Britons, who are usually the biggest buyers of properties for sale in Spain were held back in the second half of 2016 because of the depreciation of the pound, that hasn’t in dampened the market sentiments in any manner.
Spain continues to be hot and there are a number of non-EU investors from emerging nations such as China, Russia, Mexico and the Middle East who have picked up from where the Brits left off. So this is a good time to be involved in the Spanish real estate market.