Last week emerged new statistics and analysis from the property division of Spain’s Caixa bank. This new study predicts that Spanish property prices could rise by as much as 6.3% in some parts of the country in 2016.
The decline of national average prices has come to a stop in 2015 and Caixa bank has predicted that certain areas of Spain, particularly popular tourist destinations such as the Costa del Sol, especially the Marbella area, property values are going to increase and we will see more robust prices posted with regards to property resales.
Prices in regions such as The Costa del Sol will increase by an average of 3.3%, the bank have stated, but affordability of housing will remain one of the key traits of the market. Since property prices peaked and then later crashed, average home values still remain up to 40% less than the amounts once recorded.
Homes on the Costa del sol once hit a record breaking price, where the average price of property per square meter in April 2007 peaked at a value of 2,952 Euros. Now however, the average price of Costa del Sol property is 1,619 Euros per square meter, meaning that a typical three bedroom apartment would cost a minimum of 161,900 Euros, depending on the location and condition of the property.
It is always difficult to speak in terms on averages, with regards to Costa del Sol property prices, due to the huge of amount of variety which exists in the region. For example, in a desirable prime location such as Puerto Banus or The Golden mile, prices will be substantially higher. That said, the data recently provided by Caixa bank does give us a good indication of trends and also suggests that even the lower end of the market will experience price increases in 2016. Which is good news for those wishing to sell their property this year!
In light of the above, the interest in property is also set to increase substantially and transactions of property purchases and sales are set to increase by 13% compared to the number of completed transactions in 2015.
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