2017 was a very healthy year for property prices in Spain with an estimated growth of 6.9% over the year according to Anticipate. The property price forecast for 2018 shows a very similar trend, with estimates of around 6% growth leaving it slightly behind 2017 but still a healthy growth in price and a great opportunity for buyers to get capital gains on the properties they purchase at the start of 2018. These property price forecasts are set to hold an upward trend provided there is no dramatic economical impact from the current Catalonia situation.
Independence For Catalonia
Catalonia has been the topic on many people’s minds and some have even begun comparing it to Brexit, although on a much smaller scale. For those unaware, Catalonia (notably Barcelona) have been fighting for independence, and the referendum dictated that approximately 90% of the Catalonians want independence. Why does this matter? Because Catalonia is a large source for all Spain’s wealth and many are uncertain of the economical impact this will have. However, with the Madrid Government having taken over and replacing the Catalonians, we will have to wait and see if there will be any action taken or if the vote becomes dismissed. Government officials have spoken out about not wanting to negotiate with Catalonia if they decided to pursue the independence, many of them are angry with the decisions taken by the Catalonian government. The bank Caixa has decided to remove its headquarters from Catalonia until it is made clear on what is destined for Catalonia.
Overall Property Price Forecast
Now that you’re up to speed on the situation in Catalonia, we’d like to add that not even the government is certain on whether to grant Catalonia its independence, and if it did occur, nobody is certain what exact effect it will have on the property market apart from that some of the most expensive properties in Spain can be bought here and that some major property companies in the Catalonia area have seen their shares drop by over 5% each. Despite all of the political drama it has had no effect so far on the rest of Spain’s property prices or its forecast. We end this article by presenting you with some forecasts by Mark Stucklin from Spanish Property Insight. Stucklin tells us that the companies forecast is 85% higher in 2018 than it was in 2013 but it is still 42% lower than it’s peak in 2006 where more than 900,000 Spanish properties were sold. Keeping this in mind, the property prices currently seem to be at a good price with much potential to rise over the coming years.