Spain now sixth-largest property investment market in the world

The lure of Spanish property is strong, with the market growing to the 6th largest in the world this year.

The property market in Spain is now the world’s sixth-largest in terms of transaction volume, according to recent data compiled by consultancy firm CBRE.

Spain’s property market languished in 16^th and 11^th positions respectively in 2013 and 2014, but has shot up to sixth place this year on the back of impressive growth that has been consistent throughout the year and spread across many parts of the country…

According to the data, property in Spain is now more in demand than homes in France, Canada or China, and the wider real estate sector – such as commercial premises – has begun attracting some of the world’s leading tycoons and investors, such as US billionaire George Soros.

Overall, the CBRE expects total investment in Spain’s real estate sector in 2015 to reach €13 billion, which would actually beat the annual record set in Spain of €10 billion back in 2007 – the year before recession hit.

This time, however, the Spanish property sector is in much ruder health thanks to a string of reforms making it more transparent and thus scaring away unscrupulous investors who tend to artificially inflate prices.

In the residential resale market, for example, price increases have been gentle but steadily moving in the right direction, reflecting a market that offers good value and affordability, but mostly the opportunity for buyers to snap up high quality homes in some of the most sought-after regions in the world.

For those investors keen on securing some sort of return, either via capital gains or rental yield, CBRE added, however, that the strength of Spain’s property market means that the chance to turn a profit is higher in Spain than it is in markets such as the UK.

Furthermore, as confidence floods back into Spain, some capital is now beginning to trickle out, too: the CBRE figures also show that Spanish investment in overseas real estate for the first half of the year reached €1.3 billion – which is more than the likes of wealthier countries such as Norway and Japan.