We are into the second month of 2017 already and the year has already brought a lot of cheer to the property market in Spain. For one, we finally have a government in place, with Mariano Rajoy sworn in as the Prime Minister after nine months of political stalemate at the top.
So what does this mean for you if you’re looking to sell your villa in Spain in 2017? Well, to be fair, conditions are not all that great in Europe in general, but Spain has done better than most.
While Italy struggles under a new economic crisis, with Germany trying to come to terms with the refugee problem and with France facing a crucial Presidential election in which the far-right leader and Eurosceptic Marine Le Pen seems most likely to win, Spain looks like an oasis of calm.
And why not, 2016 was a wonderful year for Spain. The data shows that job creation went up significantly last year, while the tourist inflows hit record levels. These are good signs and we expect the same to continue in 2017 and beyond.
Here are the three big trends that will influence the Spanish property market in 2017.
#1: A booming economy.
Spain’s GDP grew by 3.2 percent in 2016. That is impressive when you consider that much of Europe struggled during this period. This makes Spain one of the fastest growing economies in Europe. Experts project the GDP growth for 2017 to remain over 3 percent as well. This is certainly good for job creation in the country. Remember, only in 2014, unemployment in Spain was at a record level of 26%. Today, it’s lower than 19%. So there is no question that the economy is moving in the right direction.
#2: A new wave of construction and real estate development.
New real estate development accounted for 10 percent of Spain’s GDP in 2016. This is a major improvement over the previous years, during which construction had come to a standstill.
While we are not likely to see the heady days of 2007, when over a million new homes were built, in a while, there is no question that real estate activity in Spain is picking up fast. Experts estimate that over 200,000 new homes will be built in Spain this year. These are certainly good signs for those who are looking to buy a villa in Spain.
#3: Tourism is up, and how!
Now, we don’t have the end-of-the-year stats for 2016 as yet, but there is no question that 2016 was a record breaking year for Spain as far as tourism is concerned. It is estimated that over 75 million tourists spent their holidays in Spain last year. This makes Spain the world’s most popular tourist destination.
2017 should be another record breaking year, and the number of tourists could well cross 80 million. Generally, the overseas property market is directly linked to the tourism industry. So we expect there to be a much higher demand for properties for sale in Spain this year.