Investment in Spanish property exceeding previous forecasts, says BBVA

The total amount invested in Spanish property in 2017 will likely be more than 8% higher than last year, and continue rising into 2018.

Leading Spanish investment bank BBVA has increased its forecast for the country’s real estate market growth in 2017 after a better-than-expected summer in which property sales surpassed all expectations.

In the latest BBVA Research report, the bank has increased its investment forecast for Spanish property by 1.7%, with the experts confident that total investment in the sector in 2017 will be 8.2% higher than last year…

This upward revision will continue into 2018, with BBVA expecting a further 5.9% increase in investment in Spanish property across next year. While this figure is a slight contraction on 2017’s forecast, BBVA says that the uncertainty caused by the Catalonia independence movement has meant that many economists are erring on the side of caution for now.

That being said, close to 6% growth would still represent a fantastic achievement for a sector that was in the doldrums just five years ago. From resales to new home licences, the entire Spanish property industry has enjoyed a strong 24 months.

Next year, Spain’s residential construction sector is poised for 3.8% growth as demand for new homes – driven largely by young Spaniards looking to get on to the property ladder – continues to grow.

Additional data that serves to underline BBVA’s confidence is the continuation of record low interest rates on Spanish mortgages. The BBVA report showed that the average rate on a mortgage taken out in August was just 2.21%, which is among the lowest in Europe and proving extremely attractive to newly confident, financially stable Spaniards and foreign investors.