According to forecasts by the international rating agency Standard & Poors (S&P), the property prices in Spain will grow by 2.5% this year and next 2016 year, and even up to 4% in 2017, which will be possible thanks the growing economic recovery and low interest rates. Thus, according to these data, the price of Spanish real estate will rise after years of decline due to the economic crisis, which has suffered Spain. Since 2014, the house prices in the country remained stable.
The economic recovery, which is prognosticated by many governmental institutions and experts of the housing market in Spain, but it is not shared by the general public, and low mortgage rates will help make the property prices higher also in other European countries. Thus, the real estate prices in 2015 already have recorded the largest increase in Ireland, with 9%, followed by developed countries such as Germany (5%), Portugal (4%) and the Netherlands (3%). Moreover, according to the forecasts, the real estate markets of Ireland and the Netherlands will maintain this trend in the coming years, with an average increase of 5% and 3.5%, respectively.
Meanwhile, the property prices in Italy this year will end with its downward trend, but will not yet record some growth, while they will remain quite stable.
Moreover, it is worth noting that only the French and Belgian real estate markets will continue to register declines in housing prices in 2015, by 3% and 2%, respectively. In the case of Belgium, the fall in property prices will also continue in the coming 2016.
Outside the euro currency zone, the real estate prices in the UK will continue to grow significantly in 2015, i.e. by 7%, but at a slower pace than in 2014 (10%). Even it is expected that the central Bank of England will raise the interest rates in 2015, to stop the growth in the coming years, to 5% in 2016 and to 2.5% in 2017. Finally, the real estate prices in Switzerland will record a slower growth, with an increase by 1.5% this year, after growing only by 0.1% last year.