As the Spanish property market continues to flourish, one of Spain’s leading home builders, Taylor Wimpey, reports a 91% increase in new property completions during the first half of the year.
In 2008, the Spanish property bubble burst and the global economic crisis halted economic growth, preventing many mortgage holders from paying back their property loans. The Spanish property market began to recover in 2014 with prices showing signs of upward movement and demand for Spanish property gradually started to resurface.
Since then, the recovery has gone from strength to strength with a rise in house prices, house sales and mortgage approvals. In the first six months of 2018, over 262,000 properties were sold in Spain, representing a rise of 10.9%, according to the government’s central statistics unit. During the month of June, house prices rose by 6.4%, compared with the same month in 2017, representing the highest increase for eleven years, according to property valuation firm Tinsa.
As surplus housing stock from the boom and bust years reduce, demand for new build properties in Spain is growing, especially among foreign buyers; from January to June, German buyers dominated the new build market, according to Taylor Wimpey España, accounting for 25% of reservations, followed by the Brits (14%), Scandinavians’ (10%) and Russians’ (9%).