Since Spain finally moved out of recession in 2014, things started to improve. The property market started to stabilise and investor confidence is slowly started to return.
Strong economic growth – 3.1 percent in 2017 – has provided the main driver for the country’s once beleaguered housing market. Close to 465,000 property sales or purchases were recorded in 2017.
According to Spain’s national property register, this was “the highest annual figure since 2008,” What’s more, it represents a rise of close to 15 percent from 2016.
This increase in purchases has also led to a rise in prices. The same report suggested that property prices increased by an average of 7.6 percent in Spain during 2017 compared to the previous year.
This trend has continued into 2018. According to a Spanish property valuation firm, the price of new and second-hand housing was up by 5.4 percent in the year to April 2018. It is the highest growth rate recorded by the company since the third quarter of 2007.
That’s not all. According to the government’s central statistics unit, Spanish property sales were up by nearly 30 percent in April 2018, compared to the same month a year earlier. The data shows that a total of 42,014 properties were sold in April, with year-on-year increases recorded in all of Spain’s 17 regions.
The slight downside to this growth, official figures reveal average property prices in Spain are still 21 percent lower than they were in 2007, at the height of the real-estate bubble.
It is this more manageable price increase that has prompted many experts to believe there will be no repeat of the late noughties property crash. Lessons, it appears, have been learned.