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Home News House prices expected to rise in 2016

House prices expected to rise in 2016

Published on 12/01/2016

According to data from the National Statistics Institute (INE), house prices ended the year having increased by a healthy 4.5% from what they were at the end of 2015. This is actually the biggest annual percentage rise since 2007.

A number of real-estate experts are of the opinion that by the end of this year, house prices will have gone up in all major capitals across Spain. The tendency in 2015 was that this was just the case only in Spain’s largest cities, such as Madrid, Barcelona, Malaga, Valencia and Alicante.

And, whereas prices have increased annually by 4.5% in the last 12 months, those working in the property sector believe that this year the value of property will increase by a minimum of 6% and up to a maximum of 12%.

Although, this phenomenon is not expected to last and will come to an end at some point, possibly within the next two or three years, when the fact that the population is shrinking in Spain will take its toll on the real-estate sector and lead to fewer operations and less pressure on house prices as a result.

Nevertheless, until this actually happens, property purchases will continue to rise and prices will also go up.

Some professionals believe that now is the optimum time to invest in Spanish real estate due to a number of factors, including low interest rates and excellent returns in investment terms. In addition, more new jobs are forecast to be created in 2016, and it is now more profitable to purchase a property than rent one once more.

According to one property analyst, the most successful properties will be those with three or four bedrooms.

With regards to the location of the best-selling houses, they will be located on the outskirts of major cities, such as in the north of Madrid, where prices are not increasing as much as they are nearer to the centre.

For those looking to invest, the hot areas this year will include the districts of Salamanca, Moncloa, Chamberi or Chamartín in Madrid and their equivalents in Barcelona, but also municipalities such as Cambrils, Denia, Estepona or Blances along the coast.

And for investment purposes, buying property to rent is also recommended this year. The most profitable will be two or three-bedroom homes for young families with a low-medium income, and in areas with large concentrations of young people living in them.



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