The value of real estate investments in Spain increases by 70%
3 July 2017
Moving from € 3.5 billion in the first half of 2016 to € 6 billion in the first half of 2017, Spain saw a record change in its market.
A market supported by foreign investors who acquires property for second homes or for the purpose of expatriation to the sun, which is the case in particular of pensioners and nomadic workers.
According to the National Council of Notaries, 122,827 properties were sold in the first quarter of 2017 of which 19,805 bought by foreigners who opt for the provinces of Alicante and Malaga prior to the capital or Barcelona.
An increase that will be constant and perennial
According to Moody's this rise is expected to continue with a 5% increase in housing annually for the next three years at a minimum. Despite the fact that banks have become extremely demanding in the allocation of mortgage loans.
It is advisable to favor urban investment in a sharp increase with an increase of 6.2% in the first quarter of 2017.
The majority of players recommend investments in Spain
All indicators are green and therefore there is still time to invest in Spain. Many banks like the UBS Group in Switzerland are directing their clients to invest in the Iberian Peninsula, particularly in the hotel and real estate industries, preferably located in major metropolises. UBS said the recovery of the property market related to the 2008 crisis is important due to increased economic growth and attractive interest rates.
Spain is currently in a real estate cycle where growth will be sustainable until this cycle matures.
As before the crisis
Concerning the construction sector in many regions prices are beginning to be similar to those pre-crisis.