The Spanish economy is recovering from the economic crisis which affected the entire continent during the last decade. The property market in Spain is also on an upward trajectory, with sustained economic growth and stability in the real estate investment sector. Over the last three years, the property market in Spain has witnessed an increase of the selling prices and demand. Property transactions and new housing starts had a 70% annual increase in 2016, compared to 2015. The legal aspects regulating the property market in Spain can be explained to you by our attorneys in Spain.
2016 was a positive year for the real estate market in Spain with an increase of prices and demand from international buyers. The property market in Spain continues to be a key sector for foreign investments. Among the factors which contributed to the recovery of the property market in Spain are the following:
• An increase of the house prices – during the latest quarter, the house prices rose by 4.1%, compared to the same period during 2015. Foreigners buying houses in regions like Costa del Sol and in cities like Barcelona lead to a strong increase in house demand;
• An improved appetite from banks to lend money in touristic regions like Madrid, Marbella and the Balearics. The low interest rates promoted by local banks and the provisions of the Spanish real estate law encourage investments in the property market;
• Brexit lead to a noticeable effect on sales to British buyers in the second half of 2016. The property prices rose in cities like Barcelona and Madrid, which are considered second home destinations for British citizens. The property demand from other foreign buyers (from the US and the Middle East) is thought to continue its upward trend;
• An increase of rents – almost all regions in Spain registered rent increases in the first quarter of 2017. This is generated by a touristic demand much higher than the accommodation supply.
Our Spanish lawyers can provide you with details regarding the real estate legislation and the provisions of a rental contract.
The above mentioned factors have set the property market on a recovery phase. The Spanish real estate experts claim that the price of housing will keep raising throughout the entire country. Other future prospects for the property market in Spain include:
• The increase of the price of land – in Q1, the prices of urban land in Spain raised by 5.2%; the final prices of houses will be affected by this increase;
• The scant offer of new houses – the demand for new houses is around 250,000 units, while the amount of finished ones in Spain in 2016 was less than 50,000 unites. The construction sector is regulated by special permits and licenses which delay the finishing date of houses and apartments;
• A strong price rise in the touristic areas of Spain – during the last six quarters, Madrid and Barcelona had a 5.1% and 8.2% house price increase, and the tendency will be consolidated this year.
Don't hesitate to contact our law firm in Spain if you are looking to buy or rent a property in Spain and need legal assistance.
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