Although the property market in Spain continued to see overall growth in 2018, some areas have done better than others, according to real estate experts.
A proliferation of property market regulations, the rising cost of finance, uncertainty surrounding Brexit, and in some markets, a high volume of new prime supply, is weighing on prime prices across the world.
The property market in Spain is set to remain buoyant in 2019 with one firm predicting that prices could rise between 5% and 7% in 2019.
Fewer overseas buyers have been buying homes in Spain in 2018, with the latest available figures suggesting that domestic demand is growing faster than that from foreigners.
The coastal province of Valencia is cheaper and more manageable than Spain’s major metropolises, making it an appealing alternative for many home buyers.
Home-building, buoyed by foreign investment, is thriving in Spain 10 years after a property bubble burst, and the new Socialist government is now looking to rein in some areas of the market
Home prices in Spain, which plummeted after the market crash in 2008, started to recover about three years ago in most areas. At the end of 2017, prices were up 7.2 percent since they hit bottom in 2015, although they are still 37.2 percent below their 2007 peak, according to a report from Tinsa, an appraisal company.
The Spanish resort city of Palma, on the island of Majorca, is to ban flat owners from renting their apartments to travellers, becoming the first place in Spain to introduce such a measure.
The real estate sector in Spain continues to attract investors' appetites, remaining for the third consecutive year above the volume of 9.9 billion euros. To the traditional investment in retail and offices, logistics and hotel assets are maintained upwards thanks to the boost of 'e-commerce' and tourism. 2017 concluded with a direct investment of 10,400 million, according to BNP Paribas Real Estate.
The uncertainty about the process of independence in Catalonia since 1-O hardly affected the tsunami of investment in the real estate market in Spain. The figure increased by 45% in one year - with special emphasis on retail, hotels, logistics and residential- and even surpasses the data of acquisitions of the past decade, before the real estate crash.
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