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Spanish property prices still rising after slump
| Published: | 17 Nov at 6 PM |
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After years of falling house prices and a diminishing market, Spanish property is regaining its position as a favourite with British expats.
UK-based and expat home owners across Spain have been in the doldrums along with their property values for some years now, but are finally welcoming increases in both demand and realised sale prices. According to local real estate agencies, average increases are expected to hit 5.5 per cent during 2017, with demand increasing at a good rate.
One agency has commissioned a report from an expert in the sector, with the result bringing good news for UK expats trapped in negative equity due to the downturn. After the 2008 financial crash and its resultant credit crunch, house prices in Spain dropped by an average of around 50 per cent, leaving thousands of expat mortgagees unable to sell up and return to the UK.
Most of those affected owed more than the worth of their homes, and those who could manage to repay their debts were unable to buy back home due to soaring UK house prices. Finally, it seems the crisis is receding, allowing Brits wanting to return home to sell their properties and clear their loans.
The report concluded by estimating the number of sales should rise by around 8 percent nest year, continuing the boost with another 6 per cent in 2018. However, to ensure further increases in sales potentials, the country will need to pull in more immigrants or risk sales and property price stagnation at that point.
The main factor in market resurgence is an increase in foreign buyers, with 17.5 percent of all sales between January and July this year the result of purchases by UK nationals. As always, the most popular region remains the Costa del Sol with its long-established UK expat community and focus on British preferences in entertainment and food.
It’s to be hoped that Brexit doesn’t put an unscheduled end to the property market improvements.
UK-based and expat home owners across Spain have been in the doldrums along with their property values for some years now, but are finally welcoming increases in both demand and realised sale prices. According to local real estate agencies, average increases are expected to hit 5.5 per cent during 2017, with demand increasing at a good rate.
One agency has commissioned a report from an expert in the sector, with the result bringing good news for UK expats trapped in negative equity due to the downturn. After the 2008 financial crash and its resultant credit crunch, house prices in Spain dropped by an average of around 50 per cent, leaving thousands of expat mortgagees unable to sell up and return to the UK.
Most of those affected owed more than the worth of their homes, and those who could manage to repay their debts were unable to buy back home due to soaring UK house prices. Finally, it seems the crisis is receding, allowing Brits wanting to return home to sell their properties and clear their loans.
The report concluded by estimating the number of sales should rise by around 8 percent nest year, continuing the boost with another 6 per cent in 2018. However, to ensure further increases in sales potentials, the country will need to pull in more immigrants or risk sales and property price stagnation at that point.
The main factor in market resurgence is an increase in foreign buyers, with 17.5 percent of all sales between January and July this year the result of purchases by UK nationals. As always, the most popular region remains the Costa del Sol with its long-established UK expat community and focus on British preferences in entertainment and food.
It’s to be hoped that Brexit doesn’t put an unscheduled end to the property market improvements.
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