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Spain update: 3% increase in house prices expected in 2020

Posted by Annebeth on 28th January 2020
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After Spanish house prices rose by an average of 5% in 2019, experts expect growth to continue this year, but more moderately: by an average of 3%, due to falling demand. Rental prices will increase by an average of 5%.

Thus states newspaper Expansión. House prices also rose less in 2019 than in previous years: in 2017-2018 the increase was more than 6%. A growth of 2 to 5% is expected for this year, depending on the different markets. Madrid and Barcelona are expected to play a less important role and in Barcelona house prices may even fall, despite the fact that both cities continue to attract investors and their rental market remains dynamic.

Decreased demand

The cause of the moderated growth is the demand. The demand in Spain did not increase in recent months, partly due to the uncertainty regarding the new mortgage law and the political situation. In addition, the fact that salaries do not rise and employment does not grow, also plays a role. For now, the number of transactions for this year is expected to be around 500,000.

Source: Expansión

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