Residential property in Spain is about 10% more expensive than a year ago, but that’s not stopping buyers from snapping up homes.
In fact, sales are expected to increase by 7% in 2017, according to BBVA.
What’s creating the demand for Spain real estate, and is now the right time for you to make an investment?
As Economy Improves, So Does Spain’s Real Estate Market
Even though prices are predicted to show a 5% increase this year, the interest rates are at an all-time low, making it an attractive time to buy property in Spain. Foreign buyers from the UK, Germany, Belgium, France and other northern European countries are taking advantage of the circumstances while they can, creating demand and driving prices up even further.
In addition, unemployment in Spain is down and households have more disposable income available to buy a home. BBVA expects the number of transactions this year to be almost half a million.
Overall, the Spanish economy is on the upswing, and it’s evident with every new shop, restaurant, bar, vehicle and tourist about town. The increasing prices and sales of homes in Spain is merely a reflection of how we’re doing economically.
The Best Time to Invest in Spanish Properties
As mentioned earlier, the super-low interest rates are encouraging home sales in the region; however, we don’t expect these rates to last forever. With the trigger of Article 50, there may be increases to not only interest rates, but also the price of residential properties.
Our advice: If you’re able to buy property in Spain, you should do it as soon as possible. Not only will you get a better selection of inventory than a few months from now, but you’ll also be able to take advantage of the favorable lending environment. And, not to mention, you’ll have an amazing new home in Spain!