Following a successful year in 2018, Spanish property predictions from experts around the globe predict another year of price growth and rising demand. A robust tourism industry, low interest rates, rising employment, affordable prices, a buoyant economy, and predicted price growth are all credited as driving international demand in Spain, and even though other nationalities, especially South Americans seem to be jumping on the bandwagon, Brits are still the top buying overseas investor, despite a looming Brexit deadline.
French and Germans clocked in at second and third place, and this trend is expected to continue as the country reports record sales to foreigners, jumping as much as 30% in some areas during 2018. Spanish firm Tinsa said in 2018, prices growth rose an average of 6% growth, but they are still 20% lower than they were when the market crashed in 2008. Hence optimism is high.
In an article by the Financial Times, talking about global real estate predictions for 2019, Hugo Thistlethwayte, head of Savills’s international residential department tips his hat towards Spain, who he says is continuing a recovery path, after the housing crash of 2008 which continued to affect the sector until 2014. Crediting both Madrid and Barcelona as two cities showing strong recovery, he recommended Valencia as the destination to watch.
In the same article, Knight Frank’s head of global research Liam Bailey predicts Madrid will show 6% growth in both the domestic and international real estate sectors thanks to low-interest rates, expanding investment areas and an upbeat economy.
Predicting Madrid will see increased interest from Venezuelan and Argentinian nationalities eager to get their foot on Spain’s housing market, he issues caution to buy-to-let investors all over the world. Many prominent officials across the globe have accused websites like Airbnb of driving up demand and prices out of the reach of locals, and he expects local councils to place more restrictions on proprietors renting out their homes.
Also, in the article agent, Henry Pryor talks about Europe in general. Economic stability and personal safety are attracting buyers looking for steady yields. However given Brits are a significant nationality driving European purchases, everyone is asking how Brexit will affect the market.
At the end of 2018, Spain’s prime minister Pedro Sanchez looked to reassure British people living in Spain that their rights would remain the same after Brexit. Spain is a popular retirement destination for Brits, with many living in tourism stronghold coastal destinations.
If you want to buy property overseas and are interested in Spanish property predictions for 2019, call our sales advisement team about making a sound investment. Also, browse through our portfolio of apartments and villas for sale in Spain and if any homes catch your interest, fill in the enquiry form to receive more details via email.