Bankinter Forecast an uplift on Spanish House Prices for 2015.

The average house prices in Spain will increase at a gradual rate of 2% during 2015, according to half-yearly reports from Bankinter.

The bank predicts that property prices will continue to rise into 2016, at a rate of 4% in some locations. An increase in housing prices and a surge in property purchases will fuel the sectors recovery.

There will be 50,000 new home purchases in 2015 with this figure rising to 70,000-80,000 by 2016, according to the report.

Although house sales are set to increase to 380,000 by the end of 2015 and 420,000 by 2016 Bankinter do not see recovery reaching the heights of Spain’s property boom years.

It is well reported that Spain was hard hit by the economic crisis of 2008. With an unsustainable high GDP growth rate Spain’s property bubble burst leading to catastrophic consequences within the country’s property sector. Relying heavily on its tourist, property and construction sector Spain’s economy was on a downward spiral resulting in an application for a €100 billion bailout from the European Stability Mechanism (ESM).

After seven tough years low housing prices, government visa schemes and this years favourable exchange rates are helping to create a bright future for Spain’s property market.

Bankinter’s report indicates that varying factors such as employment, lower costs of financing and the lure of housing investment opportunities will boost demand within the property sector once more resulting in a moderate growth rate.

Investment opportunities are rife within the real estate sector as increasing volumes of portfolios of assets are coming available and rental income from commercial properties are also on the rise.

Insiders forecast that purchasing real estate assets in prime locations such as big cities and tourist areas should result in owners seeing a net profit of 3% within 3-5years.

Some say that on the whole the report comes as positive news for the real estate sector; 2015 is said to be a stabilising year before the beginning of the ‘real’ property market recovery.