Spain is the third most popular market in Europe among real estate investors, according to CBRE.
The firm’s latest Global Investor Intentions report highlights Spain as the number three destination on the continent among professional investors, behind only Germany and the UK. The survey found that 10.2 per cent of investors preferred Spain for their property investments, close behind the UK (15.1 per cent) and Germany (17 per cent).
Madrid was the second most popular city for investors, with 12.2 per cent of respondents reporting it as their priority target for 2016.
The figures are backed up by a new survey from JLL and the IESE Business School, which found that 9 in 10 investors said they had a high or very high interest in investing in the Spanish property market, including both commercial and residential property – although Kyero notes that political uncertainty, competition from other investors and a shortage of supply are potential obstacles.
When it comes to the residential market, overseas demand has proven crucial to the country’s real estate recovery. A separate study by CBRE recently predicted a 20 per cent increase in the number of Spanish property transactions in 2016 compared with the previous year.
CBRE also forecasts that the average property price in Spain will rise by 5.9 per cent on average this year, peaking at 6.3 per cent growth in the third quarter. With prices set to increase so dramatically over the course of just 12 months, Spain’s already appealing housing market is becoming even more so, causing an influx of both new and renewed demand for property.