The Spanish economy continues to recover and should grow at around 2.7% in 2016 and 2017, allowing a net creation of one million jobs in Spain, leaving the unemployment rate at 17.5% at the end of 2017.
The expansion in national activity came from domestic demand, especially consumption growth and productive investment. Furthermore, the recovery in residential investment is also happening with its first annual growth in nine years.
In 2015 all important parameters in the real estate sector were very positive. Demand drove the market, with 401 000 properties sold in 2015 (9% more than in 2014) mainly due to good fundamentals in employment with 500k jobs created and better mortgages conditions. In Spain, prices of properties were up around 3.6% in 2015 according to statistics from Spanish notaries, with a regional disparity with Catalonia higher at 5%, Baleares leading the way at 6.5%.
Spanish banks are giving more mortgages which support this price move: 33% more mortgages were given in Spain in 2015, this should continue in 2016 supported by the ECB who is trying to help domestic demand by giving more mortgages to people at very competitive mortgages rates. You can obtain a 1.8% fixed mortgage for 15 years…