By David Fuller
Spanish banks are expecting to see residential property prices in Spain rise significantly in the foreseeable future.
Solvia, the property division of Sabadell Bank, believes that property prices in Spain will rise by 7.3 percent between now and 2020, while Bankinter forecasts that house prices will rise by 4 percent by the end of this year, and then increase by a further 4 percent and 5 percent next year.
Both banks suggest that there will be a wide regional variation in regards to the price rises.
The Solvia forecast predicts that Catalonia and Madrid are likely to see the biggest price rises over the next couple of years, with predicted increases of 11 percent and 14 percent respectively.
The banks are also expecting to see a steady rise in the number of property sales taking place in Spain.
Solvia states that house transactions could rise between 7 percent and 8 percent each year until 2020 while Bankinter suggests transactions could rise even more quickly. Sales are likely to be strongest in high-demand locations like Barcelona, Madrid, Seville, Malaga and Alicante.
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