Foreign and domestic investment pours into luxury lifestyle areas, strengthened by Spain’s economic recovery and expansion.
2016 wrapped up on an uncertain note for the Spanish housing market, with many residential property investors exerting cautious attitude toward the upcoming year. In 2017, despite the prior year’s hesitations, the Spanish market is continuing to show an increased demand for new and second hand housing: property prices in Spain rose by 5.3%, as compared to a price increase in the EU of only 4.5%. Likewise, Costa del Sol’s holiday property markets are benefiting from a greater confidence in the Eurozone, boosted by foreign investment in the popular vacation hotspots.
Uncertainties Giving Way to Growth
In mid-June of 2016, Spain was bracing for the aftereffects of the recent devaluation of the British Pound following Brexit, the ripple effects of the US public investment policy and for the upcoming US election. Further uncertainties stemming from national measures for a reduction of deficit and unemployment rates posed additional ambiguity to the growth of the housing market in 2017.
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