Investments in Spain

2017 offers a unique opportunity to invest in Spanish property driven by a combination of low prices, which are still up to 25% below the peak of 2007 in some regions, competitive mortgage packages, low interest rates and a growing economy.

Spain Overview

The number of property sales transactions in Spain during 2016 was up significantly (14%) on 2015 figures with the greatest increases being seen in the Balearics, Barcelona, Madrid, Girona and Valencia.

  • Figures from the National Institute of Statistics (INE) show that new mortgage lending jumped 32.2% in November 2016 compared to November 2015.
  • Lucas Fox data indicates that foreign investors continue to be key drivers of the Spanish prime property residential market.
  • Spain's economy was the strongest performer of the Eurozone's big four economies during 2016, growing by 3.2%.
  • A record number of tourists visited Spain during 2016. It welcomed over 75 million visitors, an increase of 11% on 2015.

Property Sales Transactions

2016 was a key turning point in the recovery phase of the Spanish property market with sales transactions across almost all key regions gaining momentum.

According to the National Institute of Statistics (INE), a total of 403,866 property sales were registered in 2016, up by 14% from 2015. The figures show growth was strongest in the Balearics (31%) with Barcelona (24%), Madrid (17%), Girona (14%) and Valencia (11%) all in the top ten. Growth was much slower in areas where the British are the biggest group of foreign buyers such as the Costa del Sol (5%) due to the uncertainty over Brexit and the weakening of the British Pound. 2016 figures from Lucas Fox show that the number of sales transactions rose year-on-year by 31%.

The Economy and Employment

Spain is enjoying the strongest recovery of the four biggest Eurozone economies. During 2016 Spain’s economy grew by 3.2% (the same pace as 2015), outperforming expectations and surviving the protracted political crisis that finally came to an end in 2017.

Figures from the National Institute of Statistics (INE) show that, in real terms, the Spanish economy has recovered around 80% of what it lost during the years of the crisis. This was helped by a huge influx of tourists during 2016 spending an average of €800 during their stay.

Spain had around 75 million foreign visitors in 2016, an increase of 11% on 2015, driven by perceptions of risk in other popular destinations as well as a weak Euro to the US Dollar. It is expected that midway through 2017 Spain’s GDP will go back to 2008 levels, based mainly on the export of goods and services. There is still currently less investment than back when construction was the primary engine of growth. Analysts forecast the economy will grow at a slower rate of 2.3% during 2017.

Unemployment,meanwhile, is at its lowest since 2009 at 4.24 million.

Euribor and Mortgage Lending

The Euribor is a European-wide economic metric that calculates the average interest rate that banks in the Eurozone offer to lend unsecured funds to other banks in Europe. In january 2017 the Euribor came in at -0.095, down from -0.08 in December 2016, the twelfth consecutive month of negative Euribor interest rates (in January 2016 the Euribor was 0.042).

Figures from the National Institute of Statistics (INE) show that the new mortgage lending jumped 32.2% in November 2016 compared to November 2015. Some forecasters predict that some banks will increase their fixed rates for mortgages during 2017.

Investment Highlights in Barcelona

With the lure of the Mediterranean lifestyle, strong economic growth and a booming property market:

  • Invest in Barcelona and enjoy returns of up to 5.5% PA
  • Prices start from €350,000
  • Booming property market
  • Strong capital growth

Lucas Fox's dedicated investment team are proud to present a selection of excellent investment opportunities currently available in Barcelona:

  • DIAGONAL PORT - Modern apartments in the new Diagonal Port development with terraces, a rooftop infinity pool and sensational sea views.
  • PROVENZA - Beautifully renovated building located in the heart of the Eixample district.
  • CASA BURÉS - Modernista masterpiece located in Barcelona's Eixample district.

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