The Balearics have led the way in the property market recovery.

12-05-2018Archive

Since home sales dropped to their lowest level in 2013, the Balearics has been the "province" to experience the greatest increase in sales. BBVA Research in its magazine Situación Inmobiliaria España reveals that behind the Balearics have been the Barcelona province, Cantabria and Asturias.

Although the Balearics, Cantabria and Asturias are all regions, they are treated as provinces for the purposes of this research. In only sixteen of fifty provinces considered was the sales increase in 2017 lower than in 2016. The study highlights in particular the sudden rise in the sale of second homes. In 2016, there was a 4.6% drop in the Balearics in 2016, but sales went up by 44% last year; these equated to 10.6% of all sales transactions.

Nationally, BBVA expects the number of sales to go up 7% this year to around 570,000. Prices are forecast to go up five per cent on average, twice as much as last year's increase. Over the next ten years, the forecast is for sales to at least double.

The general assessment is that there is a growth cycle at present. Parts of the country where sales have been low are expected to show greater activity this year. Nevertheless, in terms of volume of sales, Madrid, Barcelona and the Mediterranean will lead the way.

In 2017, BBVA notes, there were some 532,000 sales, an increase of 16%. This rise is attributed to economic and employment recovery and greater consumer confidence. Sales are, however, still well below the peaks experienced between 2004 and 2006.

One of the study's authors, Felix Lora, says that there isn't a housing bubble in Spain. Price levels fit with the current development of the market, he adds. As for a bubble in the rentals market, he explains that talk of this is all "relative". Areas with relatively high rents are very specific.

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