Summary of the property situation in Spain in 2015
The main variables to measure the health of the residential sector – prices, purchases, mortgages granted and the construction of new buildings – are all set to end the year in positive figures, and that’s without exception.
We can finally wave goodbye to the crippling crisis, which commenced in the third quarter of 2007 and didn’t reach its turning point until 2013.
The main factors to see the situation turn around to a more positive one include the economic recovery of Spain in general, the end of the spiralling destruction of employment and the progressive return of finance from the banks. These have all led to an increase in consumer confidence, which has encouraged people to buy property again without fearing that the market will crash.
As a result, house prices have increased in certain areas where purchases have picked up substantially and the market has become active once again.
However, in saying this, the main people buying property have been those with money saved up and to spare, and who would easily be able to access finance for a small mortgage.
Last year, the recovery of the sector began to be noticed in Madrid and Barcelona first of all, and this was then followed by in tourist areas such as Malaga, Alicante and the Balearic Islands.
This year, this tendency has become more apparent, but hasn’t completely followed through to the rest of Spain, although other major cities have begun to see their market pick up and new buildings being erected due to new demand.
Perhaps the most noticeable phenomena in 2015 has been the fact that developers are purchasing land once again. This is particularly the case in Madrid. As a result, property prices are going up and the demand for property and urban land to build on has shot up very quickly.
Some experts are worried by this situation while others see it only as a knee-jerk reaction to the sudden activity after so many years of slow progress.
As a result, it is expected that the construction sector will continue to expand and the rhythm of completing new buildings will increase to a healthier rate.
All in all, next year is looking very positive and experts believe that the recovery of the sector will continue as before, but at a more sustainable rate.