Experts have predicted that the housing market in Spain will continue to make a strong recovery throughout 2016 in light of the recent Brexit results – echoing our thoughts in an earlier post.
Credit rating agency, Moody’s, has estimated a 5% increase in house prices in this year alone; this is in response to Spain’s booming economy, low mortgage rates and the demand for property.
The banking sector is also starting to see some major improvement. European Central Bank (ECB) has seen interest rates hit record lows and other lenders are competitively reducing their rates in-line with this. Euribor, the benchmark mortgage interest reference, stood at -0.013% at the end of May. Moody’s also found the average mortgage default rates are now below 5% and have been for the past 8 months.
With prices remaining stagnant for a number of years following on from the financial crisis, this news serves as a great relief to the country as the property market continues to see real progress with its housing status in Europe. The number of British buyers in Spain has already been reported to take up around 20% of all sales last year and it’s likely this will increase further in 2016.
Graham Davidson, Managing Director of Sequre International, comments on the promising outlook for Spain’s property market –
“Another positive forecast for house prices in Spain just reinforces the message that we have been pushing for months – that the country is booming and people are once again pouring into the property market. Recovery from the banks is one of the key factors we would be expecting just before a price rise, as more people want to snap up cheap deals while they can before prices increase.”
“Sequre have already seen a 5% growth in the number of Spanish enquiries post-Brexit result – a hugely poignant increase at a time when many thought that Spain would begin to decline after the UK’s exit from the EU. British people in particular are looking to purchase in Spain for a number of reasons, whether it be second home, relocation or investment and it’s easy to see why. Conditions are perfect right now and we would strongly recommend anyone considering buying a property in Spain to do so now while prices are rising steadily.”
Many of our Spanish properties are not available on the open market so to help you find your dream home, you can contact the team at Sequre on 0800 011 2639. Our team can help tailor your property search in a way that suits you. From budgets, to legal and financial advice and even subsidised viewing trips, we’re here to help you find your perfect property in the sun.