By the start of 2017, Spanish house sales had recorded 10 consecutive quarters of growth, with transaction volumes at least 15 per cent higher than at the end of 2015.
“We believe that a growing economy, low financing costs, good potential for rental returns and capital appreciation will continue to drive sales throughout 2017 and beyond,” said one Spanish property expert.
He argued that there is likely to be additional sources of investment: “We expect that demand for Spanish property from other foreign buyers, including from the United States and the Middle East, will continue its upward trend throughout 2017.”
New flights are anticipated from US destinations to cities such as Barcelona, while the available supply of new property has been restricted through a combination of developer reluctance, the after effects of the recession and increases in the price of land.
Alongside Barcelona, other major Spanish Mediterranean cities such as Valencia are witnessing high investor demand, together with the capital Madrid and the Balearic islands, where transaction numbers soared by more than 32 per cent in 2016. Rental values in these locations have also risen dramatically in recent months.
