In recent years, the Spanish real estate sector has not only stabilised but has also seen steady growth with a gradual rise in prices since 2014. According to the INE (Instituto Nacional de Estadistica), the market reached almost 80% of its pre-2008 level.
Between 2016 and 2017, Spain's GDP grew by 3.4% in many economic sectors. For real estate, this optimistic recovery is particularly helped by mass tourism, which continues to grow. More than 75 million visitors came to Spain in 2016, 11% more than in 2015.
The influx of tourists to cities like Barcelona attracts investors. Second homes or rental investments, the market soars.
Soaring sales volume
As a snowball effect, the speculative market led to a strong increase in sales volume, particularly on the Spanish coast. Thanks to tourism, seafront real estate is particularly attractive for investors.
According to the INE, 403 866 real estate transactions were recorded in 2016, 14% more than in 2015. The Balearic Islands (+31%), Barcelona (+22%), Girona (+16%) and Valencia (+16%) recorded the strongest growth.
In 2016, the volume of sales per month was approximately 3817 transactions for Barcelona and 1828 for Valencia. In Girona and Costa Brava, the INE noted no less than 735 monthly sales.
Rising prices everywhere in Spain
In 2016, property prices in Spain rose by 4.7%. This is the largest increase compared to the previous three years, with a growth rate higher than that of the euro area (+3.4% according to Eurostat).
New real estate was more affected by the rise in prices (+6.5%) than the old properties sector (+4.4%).
Overall, the strongest price increases are observed in seaside towns and regions. Thus from September 2016 to September 2017, Palma de Mallorca with its square meter at about 2554 € sees its prices increase by 27%. The average price of real estate rose by 18% in Barcelona (about €4346/sqm), by 11% in Malaga (€1850/sqm), by 9% in Valencia (€1650/sqm) and in Alicante the prices were raised by 3.4% (€1275/sqm). However, after observing the market over the past three months, it appears that price growth tends to slow.
E.B – Meretdemeures.com.