Spain’s economy has enjoyed three exceptionally good years, growing at rates above 3%. This growth rate will probably ease in 2018 although it will still be one of the highest in the advanced economies according to all analysts’ forecasts.

The real estate sector is on track to consolidate its expansion in 2018.

House price trends are a good example of this. Q3 growth in house prices based on sales accelerated to 6.6% year-on-year (5.6% in Q2), more than the Q3 index based on appraised values (2.7% year-on-year). Given their very nature, appraised values fell less during the crisis and are therefore expected to rise more gradually during the expansionary phase of the cycle.

Nevertheless, there is every indication that the upward trend in house prices will continue in the coming quarters. For instance, land prices rose by 7.4% in Q3, a typical early indicator of the house price trend in a year’s time.