House prices in Spain are expected to rise in 2020

There have been significant value increases in large parts of Spain in the last two years, but 2019 among analysts is considered a year with relatively stable but low price increases.

A study conducted by the Spanish valuation institute Asociación Española de Análisis de Valor (AEV) shows significant price increases from 2020.

What will change in 2020 are mainly economic and demographic factors, such as increasing disposable income of the population, tenants who want to own their own properties and people who move to areas with more jobs.

The director of the AEV, Germán Pérez Barrio, says that the housing market in Spain is developing very unevenly. In the cities, prices have long been above average and this trend will only continue.

The markets for holiday homes on the Costa del Sol, Costa Blanca and the Canary Islands also have major differences, here the relationship between supply and demand determines the price.

There have been major price increases in the Canary Islands, where housing supply is severely limited. The Costa del Sol sees rising prices, but also an increasing range of newly produced homes. On the Costa Blanca there are large variations in the market, especially in the Torrevieja area. There is a high level of activity with high demand and housing in all price ranges. The share of new-build properties on Orihuela Costa in particular is increasing.

Despite the price increases that have occurred in recent years, the price level of homes is still considerably lower than the previous peak level before the financial crisis.