Categorized | International

Spanish Real Estate Market Experiences Gains

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Spain’s residential and commercial property markets are finally starting to experience increases in both prices and sales. The nation was hit particularly hard by the global recession, and its real estate market was thus crippled by sharp declines.

However, with tourism once again booming in the country, the real estate market is starting to encounter shortages in the most popular areas. Interest from tourists, as well as those looking to buy a second home in the more popular areas of the nation, has fueled a strong increase in demand.

The summer months have been incredibly kind to the nation, as hotels have experienced one hundred percent occupancy rates. Inquiries on properties in many of the coastal areas have risen by as much as ten percent.

The increased demand has led to bidding wars on properties, which have caused the average home prices to increase more than forty thousand euros in the past year alone.

Foreign investors have largely played a role in the increased demand, and in some areas, they have accounted for more than one hundred residential real estate sales in the past month alone. Even the more expensive properties are being bought up fairly quickly.

Part of the reason for the great success of the Spanish residential real estate market is the influence of government incentives. The government is offering a four percent reduction on homes. Some real estate agencies are matching the government incentive, thus making it possible for buyers to save as much as twenty thousand euros off the purchase of a new home.

 

 

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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