Average house price in Spain will rise around 6%

Average house price in Spain will rise around 6%

 

The study also reflects that, although at a national level the intensity of growth is still moderate -around 5 %- the aggregate price variations throughout the Spanish territory do not cover the high upturns observed in some local markets, where demand is intense and where the offer -mainly of new work- is very limited. However, it is expected that these increases at the aggregate level in Spain will not generate the tensions recorded during the acute phase of the previous cycle.

In fact, the report reflects that the demand for houses will continue to grow during 2018 although at more moderate rates, and it is expected that until the end of the year will exceed 575,000 transactions per year, an increase of 8% per year.

Regarding the offer, the study indicates that, although the production of new houses is far from pre-crisis levels, it begins to show signs of recovery. In fact, the volume of finished houses reached 54,000 units completed in 2017, an increase of 31% over last year. "However, in the current market environment, the production of new houses is clearly insufficient to meet the needs of demand, but also to keep a rate of renewal of the housing stock," says Samuel Población, national director of Residential and Land of CBRE Spain.

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