2018 Spanish property market forecast for 9.3% growth
It has been estimated that the numbers of properties expected to be sold in Spain in 2018 is 526,000 – a 9.3% increase on the 481,000 home sales likely to be recorded sold in 2017.
Next year’s anticipated growth is an average national price increase of 6.1%, which is a bit less than the 6.9% price increases registered this year. However, even with the expected 6.1% price increase, the average Spanish home value will still be 27% below 2007’s peak.
This data comes from Anticipa, a leading real estate analyst in Spain. The firm also compared next year’s projections with last year’s (2016) performance and found a 21% increase in home sales between 2016 and 2018.
Such growth is very impressive, and yet another testament to the strong Spanish economy.
And even though next year’s forecasted sales are still some 42% lower than 2006’s record of 900,000 home sales, it is at least built on solid foundations unlike in 2006 when the credit-fuelled boom was becoming increasingly unstable.
Good pricing and supply makes Spain a top real estate investment destination
For a long time, it has been the UK that was the preferred destination for professional investors looking to put their wealth in property. But with the growing uncertainty around Brexit, the UK’s reputation as a strong and stable safe haven is beginning to unravel – with the property markets of Spain and Germany instead attracting increased attention.
According to a Knight Frank poll of 148 leading real estate investors, that control £300 billion of real estate assets, 20% of those surveyed, view Spain as their preferred investment market in 2018, second only to Germany.
The UK will be the preferred property investment destination of choice for just 12% of investors next year, down from 27% this year.
The main concerns investors have about the UK, are lack of available stock, and unrealistic high prices.
In contrast, Spain’s growing demand for homes, office space and retail and leisure facilities, makes both its residential and commercial markets extremely strong. Prices are a fair reflection of market value, and because the Spanish economy is so strong, there will be a growing demand for office and industrial space, the investors said.