Spanish property valuation company Tinsa is predicting a rise of 5-7 per cent in the average Spanish property value in 2019.
Tinsa bases its forecast on the current trends seen in the Spanish property market with regard to the number of building licences issued and sales and mortgage figures.
Studying data that has been accumulated over the past two years, Tinsa expect the number of property sales in Spain to rise sharply from the current level of around half a million per year, to between 625,000 and 650,000 in 2019.
The company also predict the number of mortgages granted on Spanish properties to go up by around 15 per cent to between 275,000 and 300,000.
In addition, Tinsa has predicted the upward trend to continue in the number of new-build properties for which building licences are awarded, rising to between 100,000 and 125,000.
The rises would still leave the Spanish property market way below the peak of 2006/7 where the buying boom saw figures as much as 36 per cent higher, indicating that there is much further to go and no likelihood that overseas property investors should be wary of the market collapsing as it did in 2008.
Tinsa also recognised that the predicted national average rises will still see a great variation from region to region, and even town to town. Making it all the more important for overseas property investors to choose their area carefully when investing.
However, as the market continues to rise the benefits are likely to spread out from the main cities into more outlying areas.
The Tinsa forecast also takes into account the predicted slowdown in economic growth for Spain from 2.6 per cent this year to 2.2 per cent in 2019. Unemployment is still expected to fall further next year, which will help further stimulate the property market nationwide.
It seems overseas property investors can still be confident about the Spanish property market.