A recent study from a Spanish bank Bankinter analyses the current situation. The Spanish property market continues its recovery path characterized by increased sales transactions and the rise in property prices.
They estimate that in Spain property prices should be up 2% then could be up 4% in 2016.
The demand for Spanish properties in 2016 should be around 420 000 homes compared to 380 000 in 2015. Barcelona property prices could progress faster than in the country in 2016 according to the bank.
The outlook for Spanish housing demand relies on two factors:
– The decline in population: the structural demand for new housing will be reduced to approximately 250,000 units.
– The unemployment rate: it will remain above 19% until the end of 2016 which will make the number of households with enough disposable income to afford to buy a home slightly higher.
However, the housing market is cyclical and some positive factors should allow a stronger demand in 2016: acceleration of Spanish economic growth, attractive conditions of access to mortgages and high liquidity, and attractiveness of housing investment.
Spanish housing construction has stopped since 2012 due to a very low demand and the need for the market to absorb a huge stock which is still currently estimated at around 650 000 homes for sale.
The direct investment in prime areas of Barcelona seem to be the best way to benefit from the Spanish property market recovery.