The growing proportion of young workers in Spain plus better affordability levels will push Spanish property prices up by 8.6% over the next three years, according to a forecast from Moody’s.

The credit rating agency has carried out an analysis of the effect of demographic tendencies on property prices in seven large European markets. In the case of Spain, Moody’s expects a price rise of 5.6% in 2018 with an annual rise of 1.4% in the following two years.

“Low interest rates, better economic conditions, and a larger proportion of young workers will support the property market,” said Greg Davies, an analyst at Moody’s. He pointed out that over the last decade the number of young workers has gone up by 8% in Spain.

The agency says that the current scenario of low interest rates and economic recovery that is helping to reduce the still high rate of youth employment is making property more affordable in Spain. However, it also says that salary growth remains low, which is stopping some young professionals from buying property, a situation that Moody’s believes will change in the next few years.