Property bubble

The Uruguayan writer Eduardo Galeano said, "In the history of mankind, every act of destruction finds its answer, sooner or later, in an act of creation". Architecture is, above all, construction. But sometimes destruction plays an important role.

The bursting of the housing bubble and the economic crisis in Spain brought years of increases in the number of evictions, especially as many families were unable to pay their mortgages, and it was also impossible for many young people to become financially independent in the face of low wages.

The rate of growth of the price of rented housing softened in Spain in 2018 and ended the year with an increase of 9.3%, leaving the average rental price per square metre at 10.60 euro per month, which is 98 cents per square foot per month.

Property purchases started the year with record figures. In January, 47,289 transactions were registered, the highest figure since May 2008, and an increase of 23.1% year-on-year, according to data from the Spanish National Institute of Statistics (Instituto Nacional de Estadística or INE).

The price of used properties in Spain saw an increase of 1% in the month of February, making the average 1,613 euro/m2 or 150 euro/sq ft, according to the latest property price index from idealista.

The state of the rental market shows two markedly different Spains. According to research by idealista, rental prices in 11 Spanish provincial capitals are more than they were at the height of the property boom, with Madrid, Barcelona, Malaga and the islands increasing more than 10%.

The growing arrival of ex-pats in Spain benefits not only the tourism sector, but also boosts the property market. In 2017, foreigners bought more than 61,000 houses, largely in the coastal provinces and the islands.

As expected, property transactions in 2017 by far outstripped 450,000 operations, according to data from the Spanish National Institute of Statistics (Instituto Nacional de Estadística or INE).

The number of ex-pats buying properties in Spain has shot up in recent years and businesses catering to their needs have recovered well from the crisis that hit the rest of the real estate business in 2008.

Before… The Property Bubble: House prices rose astronomically during the property boom before finally levelling out in 2007, when Spain started to fall into its economic crisis. This lasted until 2012/13, and in this period house prices fell 35-50%.

Selling your house is a big moment, so follow these simple steps to make sure you’re doing it right: 1. Prepare the documentation: Before selling, it’s advisable to gather together all the important documents related to the property.