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News
Housing prices are expected to rise sharply in Spain from 2020
 18

  MAY

Housing prices are expected to rise sharply in Spain from 2020

A study conducted by the Spanish valuation agency Asociación Española de Análisis de Valor (AEV), shows significant price increases from 2020.

There have been significant value increases in large parts of Spain over the past two years, but 2019 is considered among analysts to be a year with relatively stable but low price increases.

What will change the picture in 2020 is mainly economic and demographic factors. As the population's growing disposable income, tenants who want to own their homes and people who move to areas with more jobs.

The director of AEV, Germán Pérez Barrio, says that the housing market in Spain is developing very unevenly. In the cities, there have long been price increases above average and this trend will only continue.

The markets for holiday homes on the Costa del Sol, Costa Blanca and the Canary Islands also have major differences, here it is mainly the connection between supply and demand that governs the price. There have been large price increases in the Canary Islands, where the supply of housing is severely limited. On the Costa del Sol one sees rising prices, but also an increasing supply of newly produced housing. On the Costa Blanca there are large variations in the market, especially in the Torrevieja area. There is a high level of activity with high demand and housing in all price categories. In particular, the proportion of newly built homes on Orihuela Costa is increasing.

Despite the price increases that have occurred in recent years, the price level of housing is still considerably lower than the previous peak level before the financial crisis.

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