Starting in 2007, Spain has been in an economic depression. One of the main causes of Spain’s crisis was their very own housing market. Tax revenues from the housing market in Spain kept the Spanish government’s revenue in surplus, despite strong increases in spending, until 2007. Following the financial crisis of 2007–08, the Spanish economy fell into recession, entering a cycle of negative performance but starting in 2015 and 2016, there has been a change.
The housing market in Spain is growing!
In 2008, Spanish house prices fell 7.71%
In 2009, house prices fell 6.88%
In 2010, house prices fell 4.03%
In 2011, house prices fell 7.64%
In 2012, house prices fell 12.05%
In 2013, house prices fell 8.31%
In 2014, house prices fell 4.45%
In 2015, house prices rose by a meagre 0.25%
In 2015, the total number of home sales in Spain increased 11% from the previous year. During the first four months of 2016, home sales in Spain rose by 13.8%. Andalucia accounted for about 19% of all home sales in Spain in the first four months of 2016, followed by Cataluña (16%), Madrid (15%), and Valencian Community (14%). In June of 2016 42.230 homes were sold only in the first half of the year, which is a 15.9% growth in the housing market in Spain from the first half of 2015.
Mortgages granted in Spain had fallen by 82% since 2006. This has also turned around and in 2015 there was a 21% increase in the number of mortgages granted. Then in the first half of 2016, 98.435 new mortgages were granted, compared to 77,446 in the first half of 2015, showing even more of an increase of 27.1%.
Foreign investors have also started to return to the housing market in Spain. In 2015, foreign homebuyers bought around 48,000 homes in Spain, up by more than 13% from a year earlier. This was about 13% of the total home sales in Spain.
Rentals are also up! Average apartment rents in Spain rose by 3.6% in 2015, Cataluña saw the highest annual increase in rents, up by 10.7%. In Barcelona, the average rent stood at EUR13.3 per sq. m. per month. All Barcelona´s 10 municipalities experienced rent increases in 2015.
Based on the growth we have seen in 2015 and 2016 and the latest estimates of BBVA Research, the Spanish economy is expected to grow around 2.7% in 2016 and 2017, creating of close to a million jobs and bringing the unemployment rate to 17.5%. Things are improving and the road to economic recovery in Spain is looking bright. It is the time for any property owners to start selling and renting as prices are rising and the housing market in Spain is growing. For more information on the growth of the housing market in Spain, in Spanish, read this article from BBVA Research.
Focusing more on Barcelona, we at SuiteLife are experts in this housing market and we will share some of our insights we’ve learnt over the past years. Barcelona is a special city with a special market, rich in culture and opens doors to many opportunities. It is a vibrant city with economical and cultural diversity. Everything that effects Spain as a whole does not necessarily effect Barcelona; a common misconception people have. People always wait for the market to be at its peak to buy, however it is always the right time to buy real estate. Especially in Barcelona, the housing market attracts a large number of foreigners to buy and we specialise in helping foreigners invest in real estate. If you have any further questions or need more info, take a scroll through SuiteLife and feel free to contact us.