With the Spanish economy outperforming the average within the EU, the country’s property market is seeing an increase in residential sales and construction activity as well as steady price growth.
Spain was one of the worst-hit European countries during the Global Financial Crisis, however since 2014, the situation has reversed and Spain is now one of the strongest performing economies in the region. In 2019, its economy is expected to expand by 2.3 per cent, slightly less than the 3 per cent seen in 2018 yet significantly higher than growth predictions for France (1.4 per cent), the UK (1.3 per cent) and Germany (1.0 per cent).
The strong economic growth has been helped by a tourism boom. Spain welcomed close to 83 million international visitors in 2018. This places it as the second most-visited country in the world behind France.
Prior to the GFC, Spain’s housing market boomed and residential construction, transactions and prices all experienced substantial growth. This was followed by six years of price falls until 2014 when prices began to recover, driven by economic growth, low interest rates, low property prices attractive mortgage packages and an increase in international buyers.
The market is yet to return to the levels seen prior to the downturn, suggesting there is room for growth still. In the year to March 2019, house prices across Spain increased by 6.8 per cent, while prices of new build properties increased by 10.4 per cent.