Spain could see 2% rise in property prices by end of 2015

Spain is on course to register 380,000 property transactions this year, with 2016 set to be even better.

A report compiled by influential Spanish commercial bank Bankinter has suggested that property prices in Spain could end the year two per cent higher than at the end of 2014.

The report also adds that Spain is likely to shift 50,000 new homes this year as the property recovery strengthens in both the new build and the resale home markets…

With a  two per cent property price rise expected as a national average this year, Bankinter’s report also looks ahead to 2016 and forecasts that property prices on the Costa del Sol could increase by four per cent next year. Nationwide, 2016 could also see 80,000 new homes sold – driven by increased consumer spending and confidence that is a result of Spain’s ever-improving economy.

A leading house price index appears to confirm these reports. According to the index, the price of the average Spanish property in the second quarter of the year was €234,000 – 16 per cent below 2005’s average price by an increase of around 1.8 per cent on 2014.

This improved outlook in values is a direct result of returning investment and confidence, with Spain on course to see more than 380,000 property transactions for the year. Bankinter’s report forecasts that figure to reach 420,000 in 2016.