Sunday, 26 February 2017

How is the Spanish Property Market Looking for 2017?

Written by Posted On Wednesday, 01 February 2017 14:12

There is no doubt that 2016 was a good year for the Spanish property market. Following a disappointing few years, the market saw a 15% increase in transactions. Despite this, the Spanish are not in the clear yet as unemployment levels are still high while the economy is still weak.

In Spain, there is a trend linked with the economies of other European countries. If they are strong then buyers from countries such as Germany and the UK show an interest in property. However, Spain has also been at risk from the result of the Brexit vote as British buyer’s form an important part of the Spanish property investment market but their interest did not wane with many still dreaming of owning a Spanish property.

The interest from UK buyers has in fact, been high. So high, that the figures were very close to breaking records according to Spanish land registry figures. As the price of property in the UK remains high, many over 50’s are deciding to sell up and move to Spain because they get more for their money.

So, as demand remains high, where are investors going to purchase property in Spain in 2017.

Almeria – This is a popular region in Spain as it has retained a lot of its traditional looks and traits as well as being perfectly located on the Spanish coast. There has been an increase in sales of 93% year on year with the average price of a property being €129,000 making it an affordable and attractive prospect for many. It is likely that this year will be a very productive year for Almeria.

Alicante – Property in Alicante is as much as 15% cheaper than property in other areas of Spain and each year investor numbers grow. The market in Alicante does rely on international buyers but growth is expected for the next few years.

Tenerife – The average price of property in Tenerife has increase to just shy of €250,000 which is an increase of around 5% in 2016 which matches the average price of property in Spain.

As an aside to this, the market in Tenerife has now seen Italian buyers become more prominent than British buyers. Tenerife has a lot to offer and this is highlighted by the number of visitors that visit the island who take advantage of the beautiful weather and cheap properties.

Marbella – The economy crash caused real problems for Marbella in 2008 but it got back on its feet quicker than other areas of the country. Therefore, it is predicted that Marbella will be one of the more productive property markets in Spain for 2017. Marbella is known to be a place where the rich and famous descend on during the summer months and so, it has a significant effect on the Marbella market.

For many years, Marbella has been a popular area with more than 100 different nationalities living in the area which means that demand will continue to rise during 2017.

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