According to Premier Marbella news sources, it is forecast that this year Spain will register around 440,000 property sales, which would represent an increase year on year of almost 12%, pushing the total in property transactions to a value of over 20,000 million euros, well above the 18,000 million euros accounted for in property transactions in 2015. The Marbella property market is on the forefront once again with growth in this sector expected to double in 2016.
There is currently a big demand for real estate investment in Spain partly fueled by the low interest rates. Of the 400,000 property transactions that were carried out last year, 60% were for individuals with only 240,000 new mortgages contracted, which highlighted the fact that 40% of these property transactions were completed with external funds or cash. There is a particular focus on the Marbella property sector and a recent report released by one of the leading Spanish banks BBVA states that property prices will rise in general terms by 3% in 2016 as the volume of properties available for sale diminishes.
Data released from the Ministry of Public Works shows that Licence applications for the construction of new developments has risen by 39.2% (10.606) during the first two months of the year, compared with the same period of 2015.
The indications would show that planning permits to build new projects in Spain has continued to maintain the upward trend that ended last year with an increase of 42.5% on the previous year and so marking a third consecutive year of increases.
Despite the significant increase in planning permits registered in the first two months of this year, the figure is still far from the total of 132,260 building permits issued during January and February of 2006, the year prior to the crisis when the property sector was edging towards its peak.
Leading Marbella property specialist Romano Keogh commented that the data so far for 2016 reports that of the total number of planning applications made, some 74.5% relate to the construction of new apartments developments, with a total of 7,905 units and an increase of 42%.
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