Spanish residential property prices rose by 1.8% in the last quarter (Q4) of 2017, according to the latest data published by Spain’s property registrars.
Last year was a pivotal year for the property market, with both sales and prices maintaining an upward trend. Average property prices (per square meter) grew by 7.6%, taking them to around 21% lower than the peak values reached during the property boom.
Spanish demand pushed property sales up by 19.7% in Q4, while foreign demand grew 20.4%, compared with the same period last year. As a result, foreign demand accounted for 13.6% of total property sales in Spain at the end of last year. British buyers were the most prominent nationality, registering a total of 2,384 property sales, followed by the French (1,242) and Germans (1,198).
A total of 464,233 properties were sold across the country throughout the year, representing a rise of 15% from 2016 figures and the highest amount for nine years. There was also an 11.3% rise in the number of new home sales last year, thanks to growing demand.
Beatriz Toribio, the head of research at the Spanish property portal Fotocasa, said: “In 2018 we will see new builds become much more important, which will in turn lead to more sales,” reports Spanish Property Insight, “and sharper price rises too since this type of property is more expensive and subject to higher taxes.”
Home sales will exceed 500,000 transactions this year “meaning a return to levels last seen in 2008”, Toribio forecasts.