Spanish Property Investment: +8,2% in 2017, +5,9% 2018
The bank BBVA has updated its forecast in its report situation in Spain for housing investment: their forecast is for 2017 +8.2%, for property prices but less for 2018 with 5.9%, given the uncertainty on Spanish economic policy.
The bank highlights a real estate market with a positive trend, given a significant national and international demand and the rise in housing prices, and more land sales eg more new built in the future. The low cost of borrowing sustains the growth of the residential demand and property developers activity.
But this study justifies a decline for 2018 given the uncertainty of the economic policy, including the weight of regulation in new real estate projects.
Mortgages in Spain are the cheapest in Europe: the average interest rate on a mortgage for home purchases was 2.21% in August 2017 at a floor level that could only slowly increase in the future …