Insight into the Spanish property market, guides to help you make informed decisions, and a directory of real estate professionals and home service providers from a source you can trust.
This is a website for buyers, owners, and sellers of property in Spain, offering reliable information and resources to help you get things done with confidence. It is run by Mark Stücklin, author of the Spanish Property Doctor Column in The Sunday Times (2005-2008), and the book ‘Need to Know: Buying Property in Spain’ published by Collins.
When you buy or sell property in Spain the sums of money are large, perhaps one of the biggest financial decisions of your life. The high transaction costs you will face like taxes and commissions only make the decision more important to get right. And when you own property in Spain you face a host of extra challenges to manage, and costs to control. Unfortunately, the Spanish property market is opaque and full of pitfalls, and notoriously unprofessional. Buying and selling property in Spain is not a decision to be taken lightly, and you may find it much easier to buy than sell if you don’t take care. In this market it is crucial to do your own research, and don’t rely exclusively on people who are trying to sell you something – let’s just say they might not have your best interests at heart. Spanish Property Insight is the only independent source of information and analysis of the Spanish property market. Don’t even think about buying or selling property in Spain without subscribing to Spanish Property Insight.
Spain will be a European leader in both house-price inflation and unemployment next year, according to a forecast by the international ratings agency Moody’s.
It seems contradictory that Spain has both high unemployment and high house-price inflation, but that is what Moody’s is forecasting for next year, and it’s already the case.
Though Spanish unemployment has come down from mind-boggling high of 26% in 2013 to 14.2% today after some good years of economic growth, it’s still one of the highest levels in Europe, second only to Greece (16.7%). Moody’s forecast it will fall to 13.4% next year as the Spanish economy continues to expand, albeit at a slower rate than before. In contrast the unemployment rate in Germany is 3.1%, and in the UK 3.8%
What happens to house prices in a country with such high unemployment? They go up more than in countries with much lower levels of unemployment, according to Moody’s, who forecast Spanish house prices will rise by 5.5% on average next year, the highest level of annual house price inflation of all the eight European countries included in the forecast.
In comparison, prices are forecast to rise 4.5% in Ireland and Holland, 4% in Germany and Portugal, 2.5% in France, 0.7% in the UK, and no change in Italy.
In terms of economic growth, Spain is forecast to lose the number one spot to Ireland on 3.2%, with Spain in second place with 2%.
Moody’s also forecast tighter mortgage lending conditions for Spain next year but consider the market risks lower, thanks to more prudent lending, the popularity of fixed-rate mortgages, and the effort Spanish households have made to deleverage over the last decade.
Nonetheless, the agency sees imbalances which it describes as “early warning signs of risks that emerge when house prices rise,” for example higher LTVs on new mortgages and falling rates of household savings.
Everything you need to know about property in Spain
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