Forecasts of stability in house prices for 2020
A report by the appraisal company TINSA highlights that it will continue to moderate growth. In October 2019, the general year-on-year rate of change was 3.1%.
According to this study, the average price in Spain shows a cumulative increase of 2.3% in the first ten months of 2019. And housing, both new and used, has risen 16.6% from the minimum recorded during the crisis.
The forecast made by TINSA is that the purchase and sale of properties will increase between 3% and 5%. Rafael Gil, director of the studies service of society, expects the average price of housing increase "up to 3%" in 2020. The company expects the same stability in terms of supply and demand.
The case of Ibiza and the Balearic Islands
The Balearic Islands, together with the Canary Islands, are the communities where the interannual variation has been most acute, reaching 5.4% during the month of October.
This is two points above the indicator for 'Capitals and large cities' (which stands at 3.4%) and double the average for the Mediterranean coast (2.7%).
Below you can see a comparative graph with the data from 2001, taken from the report "Tinsa IMIE October 2019":
The price of fixed mortgages continues to fall
To such an extent that there are already products from some entities with better conditions than variable-rate mortgages. The main factor is the "war to attract customers and profitability", as they state in the specialized portal elEconomista.es.
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On the other hand, the Spanish Mortgage Association (Asociación Hipotecaria Española, AHE) declares that "fixed rate contracting continues to grow". Also, banks have encouraged these fixed rates because it gives them a higher return, to have higher prices and because it is still expected a long period of euribor in negative.
In this extraordinary situation, however, they can still compensate for variable-rate loans, in the case of mortgages with short maturities.
Investing in housing in ibiza in 2020
If you are thinking of buying a property on the island as an investment, at Ibiza Country Villas we can provide you with the advice you need.
Our real estate agents are at your disposal in our office on the Paseo Marítimo. Come closer and we will resolve any doubts you may have if you intend to invest in housing in Ibiza in 2020.
The premises of our real estate agency in Ibiza are located in the Transat Building, directly opposite the Casino Ibiza.
