Spain set for stellar 2016, say agents
Spain is set for a stellar 2016, predict estate agents, as rising prices and an improving economy fuel confidence in the country's housing market.
According to Spain's central statistics unit, house prices rose each of the country's 17 regions in 2015, with values up 4.5 per cent nationally, its six consecutive quarter of growth.
That positive sentiment is being bolstered by a strengthening economic picture. Indeed, Spain's labour ministry recently announced that unemployment in the country fell almost 8 per cent from the previous year, with the number of jobseekers plunging by 354,203 - the largest fall ever recorded.
At the same time, the economy is forecast to be the fastest growing of the "Big Four" euro economies in the coming two years, according to the International Monetary Fund.
Together, those are helping national buyers to return to the property market following a long period of slow bottoming out in the wake of the financial crisis.
"If further convincing was needed that 2016 is the year to invest in Spanish property, latest research suggests that homes in Spain are reportedly currently undervalued by 26% and Madrid & Barcelona properties are now seen as better investments than London or Paris," notes independent real estate agency Lucas Fox International Properties, which has offices based around Spain.
"The next five years is going to see demand for the luxury Ibiza brand explode worldwide, in America, Asia and the Middle East. With the new Super Port due for completion in the next year or so, with luxury designer shops finally hitting Ibiza, and more 5 Star hotels opening (such as the iconic Hotel Montesol becoming a 36 -room exclusive Hilton Hotel next year), the island is only going one way. – Up!" says Jason Ham, head of business development in Ibiza.
Tom Maidment, Partner of Lucas Fox Costa Brava, predicts "even greater numebr of international buyers" as prices remain attractively low. Down the Coast in Valencia, it is also expected that for the first time since 2008, construction of new homes will recommence in the city. In Barcelona, meanwhile, Sales Manager Karen Storms notes that prices are beginning to stabilise and slowly increase.
"In all of these locations the improving market conditions are being driven by increasing levels of confidence amongst national buyers, something that is crucial for the market's long term recovery," she comments.
Indeed, Amazon recently signed a new contract for 30 million euros to acquire a plot in the Mas Blau business park near the city's airport. It will construct a large hub of warehouses and offices there, which will help to fuel employment prospects, economic conditions and confidence in the local market, as well as generate more demand for housing from those relocating to the area.
One company that does not need a crystal ball to see the bright outlook is Engel & Völkers Spain, which reports a 46.3 per cent surge in transaction turnover last year, with sales rising 66.7 per cent year-on-year in 2015.
"2016 is set to be a very good year for the real estate sector in general, continuing the upward trends we have seen in the growing number of sales transactions and even a small upturn in prices by around 3-4 per cent," comments Juan Luis Herrero, Director of Lucas Fox Valencia.