Spanish property sales recover to pre-crisis levels

Official data released earlier this week showed that transaction rates in Spain's property market recovered to pre-crisis levels last year, while prices also continued their upward trend but remained comparatively low.

Buoyed by a recent recovery in economic growth, Spain's property market recorded around 465,000 property sales last year, up almost 15% on 2016 and its "highest annual figure since 2008".

In addition, property prices also increased in 2017, rising by an average of 7.6% compared to the previous year. However, they remain 21% below the height of the country's boom in 2007.

The 2008 global financial crisis caused an economic slowdown in Spain, which ultimately led to a property bubble in the country. This, in turn, meant that many borrowers were unable to repay their property loans.

However, 2014 marked the end of the downturn in Spain and prices have since started to return. The rebound in growth, coupled with relatively low prices, is attracting foreign buyers, with around 13% of sales last year coming from overseas, particularly British and French nationals.

The housing market's growth has been supported by the nation's 3.1% economic growth in 2017. Low interest rates, coupled with a declining (though still high) unemployment rate, which fell to 17% in 2017 from a record 27% in 2013, are supporting housing affordability.

Moreover, while it is likely that house sales will exceed 500,000 properties during 2018 for the first time in a decade, this is still a far cry from the almost one million annual house sales before 2007. Also at the end of 2017, Spain displaced the UK as the world's fourth-best investment destination.