How is the real estate market currently doing in Spain? The simple answer: now is the time to buy. The market has endured a severe recession for some years. On a Spanish national level the markets have stalled the negative trend and turned slightly positive. In the Quality Estates area of operation (Costa Brava and Ibiza) the trends are more positive as those markets have had less stress to endure and they have a higher intrinsic value as they belong to two of three strongest economies in Spain (besides Basque country).
The Catalunya property market is showing the following trends in Q1 2016: *
House Price index: +8,57%
Total house sales: +28,25%
Mortgage approvals: +16,29%
The Balearic market which includes Ibiza show the following information for the same period: *
House price index: +8,85%
Total house sales: +17,81%
Mortgage approvals: 23,93%
Since the end of the Catalunya recession in 2015 this is the first significant price and market increase. With current low interest rates and a relatively low euro we expect the market to pick up a serious pace during the next 12 months. Besides, geopolitical instability will favour Spain over competing markets in e.g. Turkey.
While the current market starts to accelerate it creates the ultimate moment of opportunity to buy property that will have great return on investment, because of excellent buy-to-let possibilities and the future of rising property value.
* Source: kyero.com / spanishpropertyinsight.com