What can buyers, sellers and renters expect from the real estate market in Spain in 2015? There is no shortage of real estate forecasts. Here is Sweet Home Abroad's take on the upcoming year.
1. Prices for apartments and houses in Spain in 2015 will rise. The third quarter of 2014 shows an overall change of +0,3% in price for both new and secondary homes across Spain, with positive changes registered in many desirable markets including Madrid (+0,6%), Catalonia (+0,3%), Balearic islands (+2,1%), Cantabria (+1,7%) and more. However, the across-country average can be deceiving, as many Spanish regions are still experiencing real estate price drops, like the Canary Islands (-1,1%), Aragon (-0,6%), La Rioja (-0,2%), Galicia (-0,8%) among others.
2. The demand for rental apartments in Spain will hold at a steady level. The recession is still strong in Spain, but the real estate prices indicate overall improvement. Do not expect to find cheap apartments in the centre of Barcelona or Madrid, but do expect to pay a fair price for a monthly rental in Spain. Supply and demand are level, giving landlords some freedom to set the price, and to renters some freedom to shop around.
3. The foreign buyers continue to flock to Spain for real estate opportunities. As attractive high-quality property for reasonable price is much less available than you may imagine, competition among foreigners looking to invest in real estate and residents wanting to buy a home in Spain will continue. Real estate agents estimate that there are at least 20 potential buyers for every attractive offer on the market.
4. The Euribor rate in 2015 will decrease. The current 12-month Euribor rate (December 2014) is 0,328%.