Analyst Opinion
The Real Estate market in Spain has been experiencing significant growth and development in recent years. Customer preferences:
Trends in the market:
One of the key trends in the Spanish Real Estate market is the increase in foreign investment. Spain has become an attractive destination for international buyers, particularly from countries like the United Kingdom, Germany, and France. These investors are drawn to the country's affordable property prices, favorable climate, and high potential for rental income. Another trend is the rise of co-living spaces and co-working spaces, which cater to the changing needs and preferences of younger generations.Local special circ*mstances:
Spain's real estate market is influenced by its unique geography and culture. The country's coastal areas, such as the Costa del Sol and Costa Brava, are popular among both domestic and international buyers due to their beautiful beaches and Mediterranean lifestyle. Additionally, Spain has a rich cultural heritage, with historic cities like Barcelona and Seville attracting tourists and property buyers alike. The local special circ*mstances also include the impact of tourism on the real estate market, as many investors purchase properties for short-term rentals to cater to the growing number of tourists visiting Spain.Underlying macroeconomic factors:
Several macroeconomic factors have contributed to the development of the Real Estate market in Spain. One of the main factors is the country's economic recovery following the global financial crisis in 2008. Spain's economy has been growing steadily, leading to increased consumer confidence and spending power. Low interest rates and favorable mortgage conditions have also played a role in driving demand for real estate. Additionally, the Spanish government has implemented policies to attract foreign investment, such as the Golden Visa program, which grants residency to non-EU investors who purchase properties above a certain value. In conclusion, the Real Estate market in Spain is experiencing growth and development due to various factors. Customer preferences for prime locations and modern amenities, along with the increase in foreign investment, are driving the market. Local special circ*mstances, such as Spain's geography and cultural heritage, also contribute to the market's development. Furthermore, underlying macroeconomic factors, including the country's economic recovery and government policies, play a significant role in shaping the Real Estate market in Spain.Methodology
Data coverage:
Figures are based on value of residential and commercial real estate, average real estate value, residential estate transactions and leases.
Modeling approach / Market size:
Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data from international organizations and industry associations. Next we use relevant key market indicators and data from country-specific associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita. This data helps us to estimate the market size for each country individually.
Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.
Additional Notes:
The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.
