Do you have a property for sale in Spain? Data from Eurostat shows that Spain is one of the hottest destinations for overseas property investment in Europe.
Home prices in Spain have been forecast to grow by 6.7% in 2018. Compare this to the forecast for the rest of the Eurozone – 4.6%. Indeed, Spain’s property market grew at a much faster pace than the rest of the Eurozone in 2017 as well, with home prices going up by 5% through the course of the year.
What makes Spain such a strong property market is that it is highly stable. Compared this to, say, the property market in the Czech Republic, where home prices may have risen by 12.3% in 2017, but in the long run that is not sustainable.
Portugal and Ireland experienced a double digit growth in 2017, but these are highly unstable housing markets, where prices go up and down all the time.
Italy, once considered to be one of the best overseas property destinations in the world, has suffered greatly because of the political uncertainty. Home prices in Italy had actually contracted by 0.9%.
Countries that are comparable to Spain are Germany and the Netherlands, which have very healthy economies, just like Spain, and a fast growing property market. The German property market, in particular, is in a sweet spot, much like that in Spain.
Data from another agency, Tinsa, shows that home prices in Spain went up by 3.6% on an average in the month of January 2018. In fact, the rise was even more pronounced in the biggest cities such as Madrid and Valencia, where apartment prices went up by 5% in January. In the Balearic Islands and Canary Islands, the property prices went up by 4.1%.
All Spanish regions along the Mediterranean Coast have done well recently, with property prices going up at an average of 3% to 5%. This is despite the fact that we are in winter, when the prices of coastal properties are lower than they are during the peak tourist season.
Home prices will only increase as the temperatures start rising and the tourists start arriving in their millions. There is a huge demand for rental homes or holiday villas in the country.
Indeed, the records put out by the land registers show that the number of homes sold in Spain has increased by 11% to 15% over the last 12 months. 153,390 properties were registered in land registry offices in Spain in November 2017. This was 18.1% higher than that in the same month in 2016.
85.4% of the properties sold were registered as urban properties and only 14.6% were registered as rural properties. The number of urban properties sold was up by 13.6% while number of rural properties sold was up by 5.9% through the last 12 months. The stats indicate that this is as good a time as any to sell property in Spain.