29 January, 2018

By VIVA Team

As Europe's economy strengthens, so too does Spain's property market, which is on course for another stunning year in 2018.

As Europe’s economy strengthens, so too does Spain’s property market, which is on course for another stunning year in 2018.

Financial analyst firm PwC has published a glowing assessment of Spain’s property market, calling the sector ‘perfect’ for investment in 2018.

The PwC report, titled Tendencies in the European Property Market in 2018, analyses the leading property markets across Europe, looking at past performance and future forecasts…

PwC expects 2018 to be as strong a year for Spanish property as that enjoyed in 2017, with sales volumes and property prices to continue to rise. Interestingly, PwC draws a strong correlation between European economic health and Spanish property health, finding that, as countries across Europe enjoy stronger financial expansion and increased job security, Spain’s real estate sector directly benefits.

The parallels are obvious, but not always spelled out so clearly by analysts that are historically cautious. Because of the influence and impact of foreign home buyers on the general health of Spain’s property sector, a more confident and cash-rich base of European customers is excellent news for Spain.

Furthermore, the conditions on the ground in Spain make property investment in the country – whether a foreigner or a Spaniard – highly attractive. Prices are poised to increase anywhere between 4-6% in 2018, PwC finds, and such steady growth is right in the middle of the sweet spot, balancing healthy returns for investors without spooking the banks of the financial markets by rising too quickly.

Consider, too, that Spanish property prices are still around 35% below their peak market value last seen in 2007, and it becomes clear that value for money is guaranteed in Spain.

The report is also impressed by Spain’s ability to maintain this interest in its property market recovery. The past three years have seen incremental increases in values and sales, and such stability pleases the analysts at PwC, prompting them to take the unusual step of labelling investment conditions in the Spanish property market as ‘perfect’. High praise indeed.