Expected house prices Spain 2019
When buying a house, it is always discussed whether houses increase or decrease in value and about changing house prices. A lot of people base their opinion on estimates and compare unknown situations with known situations. When looking at house prices in Spain, projections are usually based on situations in The Netherlands. The known situation, like in one’s own neighbourhood or hometown, is projected onto another region or country. We have written about the projections for 2018 earlier, but here is a small recap.
House prices Spain past years
Between 2010 and 2013 the house prices decreased massively in Spain. The Spanish economic crisis is clearly shown in the house prices. After 2014 the prices were stable for a few years, and since 2017 they increased again. The past few years the housing market in Spain has been booming. And the expectations are that it will stay this way.
Especially the new build sector was popular in 2018. The years of bank bargains and cheap apartments are over. New build is the future, and (inter)national property buyers go along with this. In 2018 there was sold 11,5% more new build property in comparison to 2017.
Regions in Spain
In general, it is expected that house prices will lightly increase in Spain. In regions such as Madrid, Valencia and de Costa del Sol, it is expected that the prices will rise explosively. In Barcelona and Girona, the prices will increase slowly, but the prices are already much higher than in 2014. In Ibiza the prices will not rise. For the past 10 years, the prices have risen enormously and they cannot rise any higher. In 2018 the prices decreased a bit already and it is expected that this drop will continue.
That the Spanish property sector looks good at this moment, has to some extend to do with the stable political situation. Even though there have been some complications the past few months, there have not been occurred any massive political changes. Catalonia is still part of Spain, the elections are only in a few days and Brexit is not final yet. The possible independence of Catalonia depends mostly on the the outcome of the elections. If the independence would eventually be realised, it would influence the property prices in other regions too.
Furthermore, Brexit will leave its trail. The list of international property owners in Spain has a clear number one: The British. When Brexit happens, it will influence a lot of branches, but the property sector and tourism sector will definitely feel this. There have been made some agreements concerning the situation. The rights of British inhabitants are protected by the Spanish state, so we’ll only know the influence on the property prices when the time is there.
Uncertainty property prices
Predicting the future of property prices will always be difficult. Prices, values and situations can always change. The Spanish are scared that the crisis will happen again, so they are careful. Don’t let this hold you back. A bought house consists of more than the buying price. It becomes a home. And no value prediction can compete with this.