Years of growth in store for Spanish property values, say industry experts CBRE

The trending term in the Spanish property market at the moment is its “high growth perspective”: something which experts at CBRE estimate will go on for considerably longer than just the end of this year…

CBRE’s report not only reiterates what we already know – that demand outstripping supply in the midst of an improving Spanish economy is pushing prices up – but it also highlights large cities as the biggest contributors to this rise in property value. Homes in cities like Madrid, Valencia and Málaga should expect to be as much as 10% more valuable at the end of 2018 than at the the turn of this year.

What’s more, the market analysts at CBRE foresee a continued – yet slightly more moderate – residential property increase over the next couple of years, estimating prices to grow another 6% on average per year from 2019 onwards.

The report is quick to point out, however, that the predicted quarterly and year-on-year price increases should not be a cause for concern. It points out that Spain’s price resurgence is a healthy growth and not akin to the property bubble that wounded the nation’s economy when it burst in late 2007.

This is partly due to large property developers, who have responded to the need for more residential projects by increasing the number of new-build home licences from around 80,000 units to approximately 100,000.

With this, of course, comes a greater ability to satisfy demand; thereby creating a significant and correlative sales volume increase.

The hope is that this year alone will see more than 575,000 property transactions: a figure that now seems eminently reachable after an impressive first quarter in 2018. This would represent an 8% increase on the number of property sales registered in 2017.