Spanish Property will increase 6% in two years

Spanish Property will increase 6% in two years. Spain and Ireland, two of the European countries that suffered most from the bursting of the housing bubble, again see Brick raise prices in the coming years.

This is indicated by winter forecasts of the European Commission, which expects a rise in real estate prices of 6.5% until 2017 in the case of Ireland, the Spanish Property will increase 6% in the same period. Malta, up 6% also completes the podium.

Although housing prices recover, the EU notes that the loan taken for the purchase of housing has continued to fall in 2015, as in Latvia, Hungary, Portugal, Ireland and Greece. In the Spanish case, the decrease in 2015 is around 4%, only being less than that of Latvia and Hungary.

On the opposite side is Greece, where the EU expects a further fall in housing prices, in this case 1.5%. Greece is, according to the report from the Commission, the exception to the improved financing conditions of the floors that occurred in Europe in 2015. According to the EU, this improvement in financing conditions is behind recovery brick price and only Greece is unimpeded. In most countries, the improvement began in 2014 but were missing, Croatia, Lithuania and Italy, eased conditions in 2015.

Where will the prices fall?

In addition to Greece, the EU predicts falling house prices in three other countries: Belgium, France and Bulgaria.

The Commission notes that the price of housing in reference to disposable income in Spain stood at 10.1 times in 2014, far from the 15.6 times 2007 when it peaked and far from the 8.6 times of 2000. Ireland has had a similar evolution to that of Spain so that the supposed price 13 times the income in 2000, rising to 16.8 times at the peak of 2007 and down 11 times in the year 2014.

In Portugal, the house stood in 2014 at a lower level to that recorded in 2000, then assumed 11.2 times the income, compared to 9 times in 2014. The same exists in Germany, where the price of the housing has increased from 8.6 times to 7.2 times income in 15 years.

This has changed the brick in Spain

The truth is that in the Spanish housing market has not only changed in the fall of the need to pay rent an apartment, but also other aspects. The first is the fall in the number of operations that are closed each year: According to the INE, in 2015, 354.132 transactions were closed, which meant reaching a level similar to 2011. However, the figure is less than half of the registered in 2007 (775.300 purchases).

Another aspect that has changed is the amount of mortgages. In absolute terms, it has been assumed almost 300,000 million euros in 2006 and 2007 to just over 41,000 in the year 2014. On average, the amount granted each loan has also plunged, dropping 37% to 106,655 euros in November 2015.

Knowing that the Spanish Property will increase 6% in the coming two years, will motivate many investors to put their hand in their pockets and will make others to follow. So, If you are searching for the latest property listed in Marbella, do not take too long, as the high demand for Marbella luxury property and the Costa del Sol keep pushing the prices higher and higher every month, so if you would like to buy your luxury property in Marbella and the Costa del Sol before prices get too expensive, please do not hesitate to fill the form on Contact Us or give us a call on+34 952 811 010 Today!