Property prices continue to soar across Spain as Malaga and Balearics lead the way

PROPERTY prices in Malaga are expected to soar by 5% next year thanks to increasing demand.

It comes after Solvia, the property division of Sabadell bank, forecast an average increase in house prices of 7.3% across the country by 2020.

Bankinter, meanwhile, predicts a 5% increase in 2018 alone.

Regions with the strongest demand and economies such as Catalonia and Madrid are likely to see the biggest rises and the Solvia forecast suggests increases of 11% and 14% respectively.

It added that sales are likely to be strongest in Barcelona, Madrid, Sevilla, Malaga and Alicante, where demand continues to be high.

Ibiza, meanwhile, is selling so fast it is becoming unable to cope with demand.

“Demand for high end residences on Ibiza remains significantly higher than the supply available,” said Florian Fischer, managing partner of Engel & Völkers on Ibiza.

“In addition, we registered a rise in average property prices in 2016,” said Florian Fischer,
Engel & Völkers brokered properties to buyers from 17 different countries last year.

The report reveals that Germans top the group of overseas buyers, followed by the traditional British, French, Swiss and Italian buyers.

It comes after Spain enjoyed a record-breaking July in terms of international tourism numbers, smashing all previous records.