Spanish property prices are predicted to grow in 2019 along with the number of property sales.
The Spanish property market recovery is set to continue this year, with prices rising between 5% and 7%, forecasts leading property valuation firm Tinsa. The firm already confirmed that nationwide house prices rose by 5.6% year-on-year in November.
The steady rise in house prices is being driven by a lack of secondhand properties on the market and growing demand for new modern homes in desirable locations; the number of building licence approvals for new homes is expected to rise to between 100,000 and 125,000 in 2019.
Demand is also putting upward pressure on the number of property sales, which currently stands at around 500,000 for 2018. Over the next year or so, home sales are expected to reach between 625,000 and 650,000 units.
Although data for the whole of 2018 is yet to be released, Spanish bank BBVA predict that the year would end with an annual house price growth of 5%, with the largest increased occurring in Barcelona, Palma and Madrid. The bank also forecasts a rise in the number of international buyers in 2019, which is in line with notary data showing that in the first 6 months of 2018, 53,359 homes were purchased by foreign buyers – much higher than the 33,000 purchases in the same period in 2007 when the property market was at its peak.