Idealista is Spain’s largest property search engine and has recently expanded to Portugal and Italy. Every year, it organizes its annual real estate conference and presents its market forecasts for 2019 as other important information about the current market trends, both locally and internationally. This was the first time they held such a large scale event in the main city of Malaga. Both Alina and I attended in representation of Prime Realty Marbella.
The highlights of the market forecast for 2019 as also current 2018 date were as follows:
- Spain GDP growth rate is expected to surpass inflation growth
- Foretasted increase in tourism compared to current total in 2018
- 2018 received a request for 10.000 new project licenses vs the 4.000 received in 2014.
- Double new build properties expected to arrive on the market in 2019 (estimated 100.000 new properties).
- Current main age group for buyers is between 45 to 64 years, with a significant decrease in those under 29 years of age.
- Fixed interest rate on mortgages is getting more popular with a 10% increase in customers since last year.
- Increase in cash buyers during 2018. 1 out of every 2 buyers does not require a mortgage for their purchase.
Other information worth adding was the significant increase in rental demands for those in the age group under 29 and shows a similar growth in comparison with the employment rate. Also, an interesting data was the fact that, during the significant price decrease during the crisis suffered in Spain, these prices never really decreased enough to match the average Spanish workers income, due mainly to foreign investors who found interesting and profitable opportunities in the real estate market.
A quick piece of information for those searching for rental investments. In the province of Malaga, apartment net rental incomes are, on average, expected to produce a 5% return while commercial properties are currently offering an average of 9%.
Another source that recently informed of the same event was blog Malaga here.