Spanish home sales will soar past the 400,000 mark this year, experts have predicted.
KPMG, Deloitte and PwC all forecast strong growth for Spain’s property market in 2016. Speaking at a recent event, they predicted that Spanish home sales will hit 440,000 this year, up between 10 per cent and 12 per cent from last year. Transactions are also forecast to total over 20,000 million euros, up from 18,000 million euros in 2015.
Local demand is being boosted by economic growth, as well as promising employment figures and low mortgage rates. Overseas investors, meanwhile, have been eyeing up Spain for several years now, with PwC ranking Madrid as the third best European city for investment in 2016. Low interest rates and bottomed out prices, not to mention the country’s evergreen tourism industry, are attracting more and more foreign buyers.
Brits continue to lead the way, making up 21.34 per cent of all foreign home purchases in Spain last year, followed by the French (8.72 per cent) and the Germans (7.33 per cent). Belgians are stepping up their investments too, with more than 2,900 buyers from the country snapping up Spanish properties in 2015, an average of eight purchases a day – taking their market share to 6.26 per cent.
The Association of Registrars’ Real Estate Statistics Yearbook for 2015 emphasises the importance of foreign buyers, who accounted for 13.2 per cent of sales last year, the seventh year of growth in a row – and significantly higher than the 4.2 per cent that was recorded in 2009.
Popular tourist hotspots are the most sought-after among investors, with the Balearics making up 35.6 per cent of total sales, followed by the Canary Islands (28.1 per cent) and Valencia (26.4 per cent).