Spanish residential property prices will rise by 7.3% by 2020, according to a new report by Solvia.
With the Spanish property market making huge progress over the past year, prospective buyers are once again considering Spanish property as a safe investment option. The renewed demand for Spanish property is pushing up property prices in prime locations across the country and analysts are forecasting that this year will be a key turning point for the property market.
One such analysts is Solvia, the real estate branch of Banco Sabadell, who believes that residential property prices in Spain will grow by 7.3% over the next three years.
Property price increases in Madrid and Catalunya will be responsible for pushing up average property prices across the country with increases of 14% and 11%, predicted respectively. Properties located on the Mediterranean coast will experience a 4.4% price increase, according to the report.
The level of market activity will rise to reach around 565,000 sales per year by 2020, compared to the current 416,000 sales, and within the next three years approximately 110,000 new homes will be built every year, Solvia predicts.
Although market activity is well under the high of the property boom years, the property market will continue to consolidate at a maintainable rate, meaning the creation of another boom and bust cycle is highly unlikely.