Real Estate Recovery Brings Buyers Back to Spain

Moscow, Russian Federation, July 29, 2015 (Newswire.com) - Property prices in Spain have fallen 44% since 2007 but as demand returns and construction picks up, prices are set to rise too. Experts predict 1.5% gain in 2015, and another 5% in 2016 after burgeoning 0.2% growth between last year and April 2015.

After peaking at an average of €2,862/sq. m. in 2007 amid liberal loan strategies, preferential currency rates for foreigners, elated European economic prospects and market speculation, prices plunged 44%, to €1,594/sq. m. in 2014 as demand disintegrated in the aftermath of the global credit crisis.

If you have made up your mind to buy real estate in Spain, choose good locations that will be in demand no matter the market.

George Kachmazov, managing partner of Tranio

Low interest rates on mortgages and a return of banker’s trust have salvaged local demand, culminating in home loan approval growth of 32% nationwide since the end of last year. Foreign buyers have also returned accounting for unprecedented highs of 13.01% in 2014, up from 8.97% in the 2009.

Renewed activity in the construction industry is also telling: 53% more building permits were delivered in 2015 than last year, picking up from the seven-year 92% plunge.

The conditions are united for buyers to make good investments in Spain before demand and prices reach new highs, but Tranio experts encourage buyers to consider their options carefully, highlighting that location is key. George Kachmazov, managing partner of Tranio, advises: “if you have made up your mind to buy real estate in Spain, choose good locations that will be in demand no matter the market.”

The full report is available on Tranio.com. It’s free to use and republish with a reference to Tranio. 

Tranio is an international real estate broker with a large property catalogue working with agencies and developers across the world to help clients buy and lease property at no extra cost. Our editorial office publishes up-to-date news, reports and forecasts for foreign realty and has been cited by major business media players such as Bloomberg, Vedomosti, Kommersant, RBC and more.