The natural cycle of the property market
Statistics confirm that Spain is in a completely different phase of the real estate cycle than the rest of Europe. The imminent increase on the price and buying demand is encouraging investors from all over Europe to choose Spain as their place to grow their money at. This change puts Spain in the perfect place where to diversify the investments, since the numbers are showing a minimum risk of loss.
Europe is going through a phase where the real estate market is clearly transforming. Experts say it is the time to invest again on the market but where to, and how to do it are big questions. The UK, one of the big investment targets of Europe might be facing a big drop on the property market. According to the last Knight Frank’s report “Central London Prime Real Estate Prices are to drop by 9% this year”. This price adjustment disrupted by the natural cycle of the market and the Brexit is causing investors to reduce their property acquisition in the country.
The same end of cycle that seems to be decreasing the success in the UK property investment might happen very soon to Sweden, one of the safe bets of the past few years. The Swedish real estate market has been growing, the prices have been increasing since the late 90’s, and experiencing a huge growth in the past 3 years; for that reason, investors and experts believe that this market might be reaching the end of this phase. The prices are starting to peak, and it is very unlikely that this market can grow much more in the following years. This likely decline also causes concerns in investors, who find hard to believe that this country can be an option for a future high performance in property investment. Spain on the other hand, is going through the beginning of this growing cycle and prices will most likely continue to increase in the following years. According to the Report of emerging Trends in Real Estate for Europe Madrid and Barcelona are on the top 18 cities to invest this year, being Madrid the 4th one and Barcelona the 12th. As you can see on the map below, a huge price increase is expected to hit Spain in 2016.
Housers helps anyone, from anywhere in Europe to invest in this growing Spanish real estate market, diversifying your investments in different well located properties chosen by our team of professionals in the most important cities of the country.
