Throughout the year we have been looking how the market is performing compared to previous years. Thanks to easier access to financing, a growing economy and an improved job market 2017 is turning out to be a pivotal year for the Spanish property market recovery. Demand for Spanish property remains high, the new mortgage market is very active and property prices are rising.
The first positive signs of general recovery started showing in 2014 and the market has been quietly growing from strength to strength in that time. Whilst this has been happening buyers from outside the country have also been growing in confidence seeing tougher regulations come in regarding off-plan purchases and this in turn is giving a real boost to professional developers who can now confidently build.
We have certainly seen an upturn this year in high quality developments and our customers are snapping up good deals on off-plan properties as buying in Spain still represents excellent value meaning that second home or retirement home, investment property or holiday rental you had your eye on still provides a fabulous opportunity.
Some 40% of property sales take place without a mortgage according to a well known national Property Index and many of the mortgages granted are now fixed rate meaning buyers know where they stand. Developers too, offer deals that mean stepped payments make buying off-plan properties more affordable.
Last month the Bank of Spain summarized the country’s housing market in a report forming part of its quarterly review. In some areas property prices have fallen as much as 45% from the boom time. Over the last three years the market has been gaining momentum and property prices in Spain have risen 16% according to the Bank of Spain.
During this time investment in Spanish housing has grown by an average annual rate of 1.5%. There has been an emphasis on responsible lending and this in turn is leading to a real confidence in the market that is sending a ripple effect from architects to developers, agents to buyers.