The Spanish property market is showing clear signs of improvement and could be at the beginning of a growth curve heading into 2011 according to experts. Recent figures from the Spanish Ministry of Housing show that Spanish property transactions in 2010 increased by 5.89% compared with 2009. However many industry experts originally attributed the increase in transactions on rock bottom prices and incredible deals offered by the country’s banks leading to a higher level of sales.
While low prices have prompted increased sales, new data released by the Bank of Spain this week shows that foreign investors spent 2.9% more on property in 2010 than they did in 2009, reversing a general downward trend in foreign investment since 2003. This new information is significant, showing that while prices have been low, buyers are using the opportunity to invest more capital than they did before.
This data from the Bank of Spain takes the entire country into account, but of course not all regions have fared the same and some have already seen price increases. But overall it highlights a vast improvement in foreign investor attitudes towards the country. More importantly, when broken down over the year, Q4 showed the highest year on year improvements suggesting a progressive change moving into 2011.
It’s too early to gain a full picture of Spain’s 2011 Q1 performance, however businesses involved with the Spanish property market are beginning to release their Q1 results. One of Spain’s largest property portals, Kyero, today announced their best quarterly results on record. Kyero identified 5 key areas in their statement this morning where they saw ‘dramatic increases’ in performance.
Unique enquiries for Spanish property increased by 13%, 27% more Spanish properties were viewed on their site and web referrals for property in Spain were up 44%. Theses considerable increases represent a 12% increase across the entire portal suggesting that Spanish property is gaining significant interest so far this year.
Such compelling data is causing industry experts to predict a growth curve could be imminent and they urge buyers to enter the market sooner rather than later as not to miss out on the deals currently available.
Source: Spanish Ministry of Housing, Kyreo, Elmundo