Evidently, the Spanish property market has entered a process of expansion. According to Data from the Pulsometer of the Business practice institute (IPE) that will be published in September 2016, the figures of the future property market are looking positive.
The sector is encouraged by offering higher quality housing and reviving the sale of assets. The real estate pulsometer shows growth in all indicators during 2016.
Prices: At the end of 2016, prices could end up with an increase in average housing prices by 5%. Behind this rise is not only higher prices but also a higher quality of real estate stock.
Sales: the sales forecast is that by the end of 2016, the volume of purchases and sales are expected to rise by 403,363 operations, which is representing an increase of 14%, returning to the market to 2009 levels.
Mortgages: The number of granted mortgages continues to rise. An increase of 10.6%, meanwhile, the granted credit will increase by 16.8% to 52,251 million euros is expected.
Visas: The new work will also grow nearly by 20% at year end. In total, in the last two years, visas accumulate an increase of 56%.
Stock of housing: According to the latest data from IPE, the housing stock by the end of this year will be reduced by 24.7% to 326,300 homes. The regions that have seen descend this stock have been Madrid, Murcia, Valencia and Castilla-La Mancha.
Performance: By the end of the first quarter, the average annual gross return of housing reached 9.1%. In the last quarter of 2015 the yield was 8.8% and 6.2% one year ago, which shows a very marked increase in just 12 months.
Rental price: According to the latest data from Rightmove, the average rental price experienced an increase of 4.8% in June from the same month last year. It is the second largest rise since 2006.
Land prices: after the first quarter of 2016, the price of land closed with an increase of 5.3% and land transactions increased 7.2%. This price rose mainly in Madrid.
In short, the ‘Pulsometer Propety indicates that all important indicators on the Spanish property market will continue its ascent until the end of the year.