Overseas property investors interested in Spain will be pleased to see that the Forecast from real estate valuation company Tinsa for Spanish property in 2018 is optimistic.
Having confirmed that average residential property prices in Spain rose by 4.2 per cent over 2017, the Tinsa forecast expects prices to continue strengthening at a similar rate this year.
Falling unemployment and economic growth in Spain is expected to underpin the recovery of the Spanish property market during 2018, and similar to last year the rises are expected to be led by the larger cities, Balearic and Canary Islands, and certain coastal resorts.
Madrid and Barcelona were the main drivers of property price growth during 2017, with average residential prices rising by 17.1 per cent and 14.8 per cent respectively. However, Tinsa say in their forecast that they feel rental prices in the central districts of these two major cities may be reaching their ceiling, and this will slow price growth down somewhat.
Price growth nationally is expected to strengthen though, with more areas turning the corner into positive growth.
2017 still saw 19 of Spain’s 50 provincial capitals showing negative growth, but the latest Tinsa forecast expects that downward trend to reverse in 2018, seeing many of those areas follow their neighbours into positive growth.
The number of residential property sales is expected to grow by 10-15 per cent nationally, reaching around 550,000 for the year. This may still be way short of the 900,000 per annum seen at the peak in 2006, but is almost double the figure in 2013 before the recovery started.
Similarly, they forecast the number of construction licences granted for new residential homes to rise by around 20 per cent to top the 100,000 mark.
All in all, if the [predictions in the forecast prove to be correct, then overseas property investors could do a lot worse than to invest in Spanish residential property this year.