MADRID: BBVA stated that the Spanish property will grow in 2015 compares last year. In 2014 the cost of purchasing a home fell from 36% to 34.8% of disposable income, meaning that while foreign buyers accounted for over a sixth of all purchases last year, the Spanish themselves are gradually becoming more able to step onto the property ladder and take advantage of low prices.
During 2014 the unemployment rate fell significantly from 25.9% to 23.7%, while the number of people in work and making social security contributions rose steadily during last year and is continuing to do so in 2015. This in turn affects the affordability of housing, as measured by average price in comparison with average household income.
At the same time, the consumer confidence index rose during 2014 from 4.7 to 14.4, and the average interest rate on new property mortgages fell from 3.13% to 2.58%, making purchase terms more attractive.
