The recovery in the Spanish property market is helping the country’s economy grow, with gains expected to continue through 2016 according to the BBVA bank. The upturn in the real estate market that started in 2013 in Marbella has now spread across Spain, with property prices nationally rising 1.4 per cent in the third quarter of 2015 compared to Q3 of 2014. According to the Ministry of Public Works it was the biggest year-on-year increase since the middle of 2008 and the second quarterly rise in a row. Growth of 1.2 per cent was registered between April and June, and followed 26 consecutive quarters of declines nationally. However, these figures were skewed by the worst performing parts of the nation, such as rural Extremadura. Hotspots like Marbella, Madrid, Barcelona and the Mediterranean coast have seen more significant rises, particularly in high-end real estate. Indeed, a separate survey by valuations company Tinsa showed an increase of 3.6 per cent year-on-year in property prices for the Mediterranean coast in October alone. Positive news for real estate in Marbella This positive news is now feeding in to the economy as a whole, with the BBVA’s Spain Real Estate Outlook report for the second half of 2015 forecasting that the property sector will for the first time since 2007 contribute to Gross Domestic Product (GDP) growth. It estimates that the sector will account for a 0.2 per cent increase in GDP in 2015 out of a total 3.2 per cent rise, and that trend is expected to continue through 2016. The report credits the recovery of demand for property as the positive contribution of real estate to GDP as more new construction projects have started, leading to the beginning of a revival of the economically important construction industry. It further points out that the good news for the property market is coming from several different sources of data—the issuing of building permits its up, as are the numbers of new mortgages, with demand from both domestic and international markets rising along with prices. Upward trend for Marbella property market The BBVA estimates more than 400,000 housing transactions were made in 2015 and forecasts that this figure will be pushed up by around ten per cent to 440,000 during 2016. The bank expects falling unemployment and rising disposable income to help keep the property market on an upward trend in the coming months. In Marbella, Altavista Property has experienced this positive trend over the past few years. New build developments are in great demand and sell quickly, and the re-sale market, particularly for high-end villas and apartments in Marbella, has been strong. If you are looking for a property in Marbella and surrounding areas please contact us.