01 February, 2018

By VIVA Team

Not too hot, not too cold - but just right: property prices in Spain are rising at just the right pace, experts say.

Not too hot, not too cold – but just right: property prices in Spain are rising at just the right pace, experts say.

Recent Eurostat data has revealed that Spain is indeed one of the most attractive investment locations in Europe for real estate, with Spanish property prices forecast to increase by up to 6.7% in 2018…

Across the EU, the average property price increase forecast for 2018 is 4.6%, falling to 4.1% for countries in the Eurozone.

Hence, Spain’s projected market growth exceeds the European average, and did so in 2017, too, with prices increasing by around 5% over the course of the year.

This puts Spain in a sweet spot nestled snugly between market growth and sensible price rises. In the Czech Republic, for example, price increases averaging 12.3% last year are – in the long run – unsustainable.

The same is true for Ireland and Portugal – two markets that also recorded double-digit price growth in 2017 – while Italy’s 0.9% price contraction is also something to be wary of.

Spain is in good company with home prices in the Netherlands and Germany increasing in value at a similar rate. Economists agree that steady and stable growth, in the region of 4-7%, is reflective of not only a strong property market but also encouraging wider economic conditions.