According to the National Statistics Institute of Spain (INE), property prices have increased by 0,8% over the last 12 months. This means a first positive annual change in property prices since the beginning of 2008 when the Spanish market was hit by the recession.
Since then, property prices have undergone a correction of more than 40%, which has made Spanish real estate very competitive compared to other Southern countries.
As commented in a former article we have seen already a clear change of this tendency as from the beginning of this year 2014 and real estate transactions by foreign property buyers have augmented considerably compared to former periods.
Spanish economy as a whole is also growing again and over the last trimester of this year we will see banks loosening up their very restrictive credit policy up to now in order to stimulate further this economic growth. This gradual change of monetary policy will incentivate property buyers who will have an easier acces to mortgages again.
This change of bank credit policy will further sustain the growth in real estate transactions.
To our opinion, property prices will therefor carefully and slowly continue to recover and investing in Real Estate in Spain and more particularly at the Costa Brava remains very attractive.