Another week and yet another report telling us that if we didn’t know already that the property market here on the Costa del Sol is about to explode.
This study was conducted by IPE a business school that is a specialist in real estate and their findings show that beach destinations property markets such as the Costa del Sol are growing by up to 10%
Jose Antonio Perez from IPE is particularly buoyant about the future of the Costa del Sol market saying to Spanish Press that the area has a bright future.
Property sales in Malaga are already up 10% this year and represent 5% of all property sales in Spain.
If sales continue at this rate the Malaga province will account for 30% of the total Andalucía market and 20% of the national property market.
The IPE argue that increasing sales will take care of the excess new properties on the coast and will ignite new home construction which is finally stuttering back into life after a 90% drop since the start of the financial crisis.
The luxury home sector is one that is showing particular strength in growth fuelled by a favorable exchange rate and that Spain is seen as more secure and stable country to invest than some of the other southern European states.
source – http://www.spanishpropertyinsight.com/2015/08/03/study-forecasts-10pc-growth-in-costa-del-sol-market/
S&P Predict Spanish House Price Rise.
The study from IPE ties in with a recent announcement from the credit ratings agency Standard & Poors who predict the price slump in Spanish Property will officially end by the end of 2015 with an increase of 2.5% on the average price of a home in Spain seen this year.
Analysts from the agency also believe prices are set to rise another 2.5$ next year and then 4$ in 2017 on the back of the Spanish economic recovery which is starting to show some momentum.
This trend is also being seen across other European property markets as economic conditions improve and financing terms remain favorable.
Supporting this upward trend even in the worst hit property markets is the ECB policy of buying up public debt which is keeping interests rates incredibly low.
For example if you look at Ireland as well whose property market was devastated by the financial crisis they have property price forecasts of 5.5% over the next 2 years.
Prices are also expected to rise in Portugal and Germany with Italy staying stable.
Source – http://spanishnewstoday.com/sp-analysts-forecast-property-price-increase-in-spain_21982-a.html?Banner=60#.VcCHlPmqqko
This data is just part of a growing body of analysis that is pointing to now being the perfect opportunity to get into the Spanish property market