Summary of the real estate market in Spain in 2017
30 June 2017
According to survey about the Spanish real estate market conducted by Solvia, this year housing prices in Spain are expected to increase by 3.2% and real estate purchases will reach 500,000 objects. In addition, the growth prospects of real estate prices in Spain will reach 7.3%, with a sharp increase in prices until 2020 in Madrid (14%) and Catalonia (11%) and a moderate growth of sales rate of up to 565,000 objects over the next four years.
"Since last year, a new cycle in the Spanish real estate market has begun," said Javier Garcia del Rio, the director general of Solvia. All the indicators point to a tendency towards the normalization of the sector.
"Our forecast for 2017 is the return of real estate sales to the level of 2010 year, that is, about 500,000 sold objects, the average price increase by 3.2%, the growth of mortgage issuance by 34% in annual terms, that is to say, more than 325,000 issued loans, and the beginning of construction of 84,000 new residential objects," said the director of Solvia.
For Solvia, the main change in the housing market in Spain has been the change in the type of buyer. Although in recent years, the worst of the economic crisis, there has been an increase in demand for second residencies, but now we can talk about an increase in purchases of the first residence, and therefore, the type of buyer changed.
From the buyer, who, through the sale of the property paid almost his new place of residence (replacement of the type of property), the traditional buyer returns, who needs financing or a mortgage for the purchase of a property in Spain. At present this rate represents 20% of the transactions carried out, but by the year 2020 it is expected to exceed 30%.
Among these clients can be distinguished foreign buyers, whose participation will be significantly higher, even exceeding 100,000 transactions, according to the Solvia report, although British citizens will lower their weight as a result of the Brexit referendum. "The reduction in the proportion of Britons will be recompensed by other buyers who will increase their presence in the housing market in Spain, such as French, German, Belgian citizens as well as buyers from the Nordic countries.