According to a certain study conducted by the Spanish bank Bankinter, the standard and average price of properties in Spain is expected to go up by about 1.5% in select places all over the country during the year 2015. This report which was conducted during a period of six month continued to say that the property prices will become stabilised this year and will eventually increase by up to 5% in 2016.
The simple fact that the economy is improving means that the level of confidence of the public has also gone up. This means that obtaining credit from banks will be easier. This ultimately means that the demand for Spanish real estate is constantly improving. As a matter of fact, the transactions involved in property purchases have increased up to 15% during the last year.
Madrid is one of the very first places in the country to experience a complete recovery. Demand for developments in the city is a solid proof that the Spanish property sector has already been activated. Bankinter has also calculated that the demand will significantly increase during 2015 in order to reach a total of about 400,000 homesin 2016, which means an increase to 450,000 properties.
At the same time, the attention on second-hand homes as compared to newly built ones will certainly push sales forward. Even after several years of a decrease in the sales as well as a lack of interest, it has been estimated that the number of newly built properties that are purchased will certainly increase to 100,000 units.
The extra empty properties that are unsold will certainly not hinder these new constructions either because those 100,000 units can never be sold unless extraordinary discounts are given, as well as because there are certain areas where properties are still lacking, especially on offers on which building can satisfy the interest of the buyers.
The primary driving force behind this sparked interest in Spanish real estate is certainly the economic growth of the country. GDP is expected to increase up to 2.2% in 2015. This will, in turn, lead to unemployment reduction, as well as an increase in the development and creation of new jobs. Even though it is still expected that many of these jobs will just be temporary, the labour market is definitely expected to perform better this year while playing a vital role in the recovery of the economy.
Bankinter also agrees to the fact that investors will most likely turn to investing in Spanish property all over again as the profit margins continue to raise even further. Purchasing property for renting is also gaining formidable force, and it is also a good way to earn money passively.