Spanish Property Increase Forecast by BBVA Bank

Positive forecasts for Spanish property continue to flow in, with the BBVA bank the latest to predict solid growth in Spanish property prices during 2017.

Research from the BBVA bank has shown that falling unemployment in Spain, along with a considerable reduction in unsold property stock will halp to produce a national average rise of 2.5 per cent for Spanish residential property.

In addition, the bank feels that the expected low level of mortgage interest rates will also produce a rise in the demand for property, ensuring upward pressure on the price per square metre of housing in Spain.

The BBVA bank similarly expect the level of activity in the property market to increase by 7 per cent during 2017. This marks a slight slowdown from the 13.5 per cent increase in property sales during 2016, but continues healthy growth seen over the last couple of years.

An increasing trend in the number of mortgages for residential property purchases is also expected by the BBVA bank, as low interest rates are coupled with increasing household disposable income in Spain, making buying a property more accessible to Spanish nationals.

Stronger demand from Spanish nationals combined with increasing interest from overseas property investors is expected to underpin growth in the Spanish property market throughout the year.

This latest forecast follows a recent announcement by accountancy firm Ernst and Young that Spain is expected to become even more of a property hotspot during 2017.

The accountancy firm, one of the biggest in the world, found that Spanish capital Madrid ranked highly as the fifth most attractive place in Europe for relocation among investors, with Barcelona also making the top ten of the list in tenth place.

This investor interest, combined with the enduring popularity of the Spanish Costas and Balearic islands, means that 2017 is looking very positive for the Spanish property market.