The Property Market In Spain. Is It Still A Safe Bet?

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The property market in Spain is booming.

The facts are proof of this, with mortgage numbers granted in Spain in the month of April soaring by 34% year-on-year.
Average mortgage values rose by 9.1% to €123,256, and the capital amounts loaned also increased by 46.5% to €3.54 billion.

The Statistical Office in Spain stated that Andalucía was a region with the 2nd highest numbers of mortgages at 5,154, just after Madrid with a figure of 6,018.
These figures were followed by Catalunya with over 4,700 mortgages sold.

The prices of houses are increasing into the double-digits across several coastal regions which include Malaga, Alicante, and Mallorca.
Foreign demand is still driving this growth, while the British still remains the largest buying group, followed by the Belgian and Nordic markets who are starting to catch up.
Yet with this significant strong growth, there are some who are concerned about the boom and bust cycle repeating itself again.

Is there really a cause for such concern?

House prices may be rising, yet in most areas they are still far off from what their peaks were in 2007 and 2008.
They rarely exceed into the double-digits outside of Madrid, which is now one of the more popular locations.
This means that prices have not yet risen to an unsustainable or speculative rates.

At this stage, the trend towards a moderate rise in prices is predicted to continue, as long as there are no sudden shocks within the markets, especially within prime areas where the supply is not meeting the high demands.

So, it's safe to say that the property market in Spain is still seen as a safe investment, and the trend looks set to continue.
Some Tenerife property agents think that even with the market lifting since the previous downturn, it will still be stable due to demand from many European nationals.

 

 

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