Spanish population decline to hit property market

A decline in population growth in Spain is likely to have long-term consequences on the country's property market.

Demand for real estate in Spain could fall in the coming decades in line with a reduction in population growth.

According to data from the country's national office of statistics, the population is expected to expand by just 2.7 per cent compared to the 14.8 per cent seen over the last decade.

The Instituto Nacional de Estadistica figures show a projected annual growth rate of less than 0.35 per cent, due to a drop in immigration from abroad and an ageing population.

Falls are expected to be seen in a number of regions by 2020, including Principado de Asturias, Pais Vasco, Castilla y Leon, Galicia and La Rioja.

Meanwhile, individuals looking to buy real estate in Spain could be about to benefit from a new wave of distressed property coming onto the market.

Banks in the country have revealed that they are looking to address the large amount of foreclosed assets which currently sit on their books.

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