Credit agency predicts 2.5% Spanish property price increase

Average property prices will rise around 2.5% in 2016, with some areas – such as the Costa del Sol – likely to perform even more strongly than that.

Standard & Poor’s (S&P), the internationally respected credit ratings agency, has published a report that forecasts Spain’s property market will enjoy average price increases of 2.5 per cent next year as the country’s economic recovery continues to blossom…

The report adds that property prices across Spain are also set to increase by a further four per cent in 2017, matching trends evident elsewhere in Europe’s other leading property markets.

Europe’s general economic recovery is helping to boost these markets, and the improvement in prices is being underpinned by the European Central Bank’s (ECB) policy of buying public debt. This strategy is leading to ultra-low interest rates that are making mortgages more attractive and affordable.

A boost in domestic confidence is also helping to drive Spain’s property recovery as more and more Spaniards enjoy a secure income and renewed passion for owning their own home.

And as ever, foreign buyers remain enamoured with Spanish property – particularly the Brits – and have poured millions into the sector over the past few months.

On the Costa del Sol, property prices in many areas have been rising for more than a year now, averaging an increase of about 1.15 per cent in 2014, and set to surpass national average increases this year.