Spanish real estate prices in line for 6% increase over coming years, says expert

Market conditions are converging to ensure Spanish property prices enjoy steady increases over the next three years.

One of the most respected voices in the Spanish real estate industry is confident that average property values across Spain are poised to increase between 5 and 6% over the coming three years…

Humphrey White, who heads up the Spanish arm of British agents Knight Frank, says that Spain’s strengthening economy is spurring strong and sustainable demand among native buyers, while the country’s enduring popularity will ensure it remains the go-to location for sun-seeking international investors for many years to come.

White added that the recent property market in Spain has been aided by the lack of speculative promotion, which has served to support the return of confidence, transparency and sensible planning to the sector.

This means that there remain some regions where good quality housing stock is lacking, which offers opportunities for real estate and banking to build into these areas as demand continues to increase.

“Spain has a great opportunity to attract companies because it offers what many of them are looking for: good quality properties, airports close to city centres, and highly qualified professionals,” said the agent.

A recent Knight Frank report identified Madrid and Barcelona among the leading 20 world cities for the global elite or ‘mega-wealthy’, particularly in terms of commercial real estate investment, but also for private residential opportunities.

Data published by the National Statistics Institute (INE) last week found that the number of foreign buyers in Spain has increased by 19.7% in 2016, with non-Spaniards now accounting for one-in-five home sales in the country.

Although Brits remain by far the largest group of foreign investors, the data showed that their growth has slowed somewhat in the third quarter of the year. However, any shortfall was made up by rising interest among French, Italian and Swedish buyers. Russian investor numbers, meanwhile, continue to dwindle.