Market Report 2017 - 2018 - Engel & Völkers Spain & Portugal
• Engel & Völkers predicts that strong residential demand in a low interest rate environment will be the main engine of the market
• The highlight of the year will be the periphery of Madrid and Barcelona, medium-sized capital cities such as Valencia, Malaga and Alicante and premium tourist destinations for second residence
• The increase in new home constructions in top locations in large cities puts prices at historical maximums. In Madrid they will reach 15,000 euros / sqm
In 2017, the property prices in Spain increased by 8%, while purchases increased by around 15%. Both of these are the highest increases in the last decade. However, there is no reason to suggest an upcoming housing bubble or that the upward trend is about to end. On the contrary, throughout most of the country's municipalities, this cycle is at its initial phase.
The forecasts for 2018 point to a rise in the price of property by more than 10% and an increase in sales by more than 20%. Although the demand for improvement and investment will continue to be the main drivers of the market, the first-time buyers (mainly young people) will begin to become significant.