- The Spanish property market WILL grow in 2016
- The British love affair with Spain has officially resumed
- Alicante and the islands are the safest places to invest
- Talk of property bubble is grossly premature
The turbulence of the Spanish property market is recognised across the world, yet 2016 is shaping up to be a good year according to Spanish property portal Kyero.com.
The portal, which lists more than 200,000 homes from 3,000 estate agents, and is at the forefront of market sentiment in Spain and has spent months researching data on the property market in the finest detail. The result is the vast data resource data.kyero.com, which launched in late 2015. Based on this data, Kyero.com’s Head of Research Richard Speigal believes it is possible to predict where the market might be headed over the course of the year ahead.
“There are some stark variations across Spain’s regions and provinces but as a whole the market looks poised for growth in 2016. The national economy is rebounding and GDP in Spain is currently up 3.4% year-on-year – more than twice the Eurozone average. Spain’s eye-watering unemployment level is also finally coming down, along with the cost of living. More jobs and more purchasing power for Spaniards is a healthy platform for growth.”
Foreign buyers will also play a role in the projected growth. Currently overseas buyers account for around 18% of the Spanish property market, though in some areas this rises considerably – in Alicante half of all buyers are non-Spaniards.
Thanks to their own country’s recovery and a strong pound, UK buyers have resumed their love affair with Spain. Visitor numbers dropped by nearly a quarter from 16.3 million in 2007 to 12.4 million in 2010, but have since climbed back up to an expected 15.5m in 2015, with a still higher number expected in 2016.
So where should Brits look to buy in Spain in 2016?
The Kyero.com team has examined several factors, including healthy domestic demand and a strong base of international investment, to rank Spain’s most promising property hotspots for 2016.
Alicante properties were the clear winner, with the sheer size of the overseas market offsetting domestic worries like unemployment. With half the market made up of international investors and very strong increases in sales volumes, Alicante is a place to feel good about in 2016.
Homes in the Spanish islands also look promising. Kyero.com’s Richard Speigal explains,
“The eastern Canaries – Gran Canaria, Fuerteventura and Lanzarote – look particularly strong with a fast improving jobs market, strong growth in lending and very active overseas interest. Twelve months of sunshine is enduringly appealing. Meanwhile international investors love the Balearics and have driven strong sales growth in 2015: foreign investment now accounts for more than 40% of the market. The Balearics also benefit from one of the lowest unemployment rates in Spain, making a happy overall picture for property investment there in 2016.”
Malaga and Murcia complete the top five likely 2016 hotspots, Malaga thanks to high international investment and stead growth in sales, and Murcia due to rising sales, increased domestic lending and overseas buyers accounting for a quarter of the market.
With rises in sales volumes and price increases, talk of a bubble has been inevitable, but such chatter is grossly premature, according to the Kyero.com team. The company cites transaction data from the Spanish notaries and registrars, which provides a more reliable flavour of market activity than headline grabbing price jumps. The latest mortgage data may show a year on year jump of 18.71%, but in the big picture the property market is still at a very low ebb compared to the boom years. Even triple digit rises would still leave the market a long way from the boom and bust experienced during the decade to 2013.