Property prices in Spain will increase by an average of up to 6% per annum over the next three years, according to the head of Knight Frank in Spain.

The British head of Knight Frank in Spain, Humphrey White, told Spanish property portal Idealista that Spanish property prices will rise by between 5% and 6% per annum until at least 2019, on the back of growing demand from buyers and a strengthening domestic economy.

“In recent years there has been very little speculative promotion, which explains why we have an obvious lack of quality stock of some kinds of assets in some areas, and demand that is on the rise,” said White. “Spain is living through a unique moment [thanks in part to a strengthening economy] and continues to offer opportunities in traditional sectors like real estate and banking.”

A fresh property market report by Knight Frank has identified Barcelona and Madrid as being among the top 20 world cities preferred by the mega-wealthy for living in, with Madrid ranked 7th in terms of destinations for foreign investment.

“We have a great opportunity to attract companies because we offer what many of them are looking for: good quality properties, airports close to city centres, and highly qualified professionals,” he added.

But most of White’s comments were probably made with office and commercial property in mind, rather than housing, according to Mark Stucklin at Spanish Property Insight.

“Based on my recent conversation with White, I assume most of his comments [to Idealista] were made with office and commercial property in mind, rather than residential,” he stated. “Even so, it’s noteworthy that the head of Knight Frank in Spain is optimistic about the Spanish property market for the next three years. Let’s hope he is right.”