Spain — one of Europe’s recession black spots — is at last benefiting from an economic and property upturn, a new report claims. The financial services provider JP Morgan predicts the country’s economy is set to grow by one per cent this year on the back of encouraging industrial output results, exports and consumer spending. It also believes Spanish banks are now “healed and well capitalised” to take advantage of the recovery.
And, it says, an improved economy will lead to more stable property prices with banks once again beginning to lend during the second half of 2014. Transactions have already outstripped expectation with Chris Mercer, of the Murcia-based agents Mercers, predicting that sales would rise by 25 per cent in 2013 — the actual figure was 60 per cent.
“Coming off the back of a very strong 2013, I predict a further increase in sales volume this year as buyer confidence continues to grow,” he explained. “If bank lending finally improves, then the market will accelerate across the board.”
The five locations showing the fastest recovery potential are:
The JP Morgan report also shows that Britain’s expatriates are fuelling the revival by returning to Spain to live and set up new businesses. Figures for 2012 showed that it was the Belgians, French, Norwegians and Swedes who dominated the property market, with Britons only reappearing toward the year end. Last year 64 per cent of Spanish sales went to British buyers.
Kieran Byrne is managing director of HomeEspaña.
“We’re certainly seeing signs of stabilisation in the market, with prices in established, sought after areas no longer falling and silly offers way below the asking price rarely being accepted for quality properties.
“Opportunities in 2014 won’t be limited to discounted resales either, as we’re seeing a definite interest in new build projects again, with some excellent beachside developments on our books selling out quickly,” he added.
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