New-Build Property in Spain: Prices are on the Increase and Trend Tipped to Continue
Spanish House Prices are on the increase with the price of both new-build and existing stock rising by 2.6% quarter-on-quarter in the second-quarter 2018.
The data from Spain's Instituto Nacional de Estadistica shows that on an annualised basis house prices grew 6.8% in the second quarter of 2018 with new-build asking prices rising 5.7%.
According to data, the granting of planning permission for new developments increased by a significant 24% year-on-year in the current year up to May.
The quarter-on-quarter increases by region saw notable differences with prices in Catalonia rising 3.7% while in the more rural Galicia prices increased just 0.7%.
The data confirms a trend of strong demand for Spanish property as the Iberian country continues to post impressive economic growth as it emerges from the financial crisis it suffered between 2008 and 2014.
The main cause of Spain's crisis was the burst of the housing bubble.
In 2017, the total number of home sales in Spain increased 14.6% to 464,423 units from the previous year, according to the Instituto Nacional de Estadistica (INE).
Analysts suggest a good portion of the recovery in housing is being driven by foreigners buying homes in cities like Barcelona and on the Costa del Sol.
Most foreign homebuyers are Britons, French, Germans, Belgians, Italians and Swedes.
The outlook for Spain's housing market remains upbeat, with house sales expected to rise by between 10% and 15% to reach about 550,000 transactions this year, according to TINSA.
"The indicators reflect a favourable outlook for the next few quarters," says a research note from CiaxaBank who expect the Spanish real estate sector to consolidate its ongoing upward trend.
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