Time may be right to invest in cities and tourist areas in Spain

PROPERTY prices are on the rise this year almost everywhere in Spain, and according to Bankinter will continue to increase over the rest of this year and 2016.

The bank has predicted gradual increases in average home prices of 2 per cent this year and 4 per cent next year in popular areas, which will help the sector, recover.

More jobs, reduced financing costs and property’s attraction as an investment as opposed to other alternatives are behind increased demand, which will rise to just over 400,000 homes in 2016, the bank has estimated. 

Yet the cycle of recovery will not lead to another demand boom as new homes will only make up 70,000-80,000 of those demanded next year, the report continued.

These factors have led Bankinter to consider the price adjustment period to be reaching an end this year, meaning the time could be right to invest in big cities and tourist areas.