In the second half of last year the British were the number one or two group of second home (non-resident) buyers in nine out of Spain’s autonomous regions.
Even though we have seen less positive exchange rates and a weak pound during the last year the demand for homes in Spain is still high. Investment in property here still looks a very attractive option post referendum and living here it is easy to see why politics doesn’t influence people’s desire for a better life.
There is a fabulous outdoors lifestyle that promotes healthy living, whilst the climate means spending more time walking, cycling or playing golf is easy. The infrastructure of this part of Spain is geared up for year-round enjoyment with fabulous restaurants and nightlife not just seasonal.
After the crash of 2007-2009, British demand began growing again consistently in the first half of 2013, rising from 3,662 in that period to a high of 8,800 in the second half of 2015 (+40%).
Sales growth went slowly in the first half of 2016 (the June referendum took place at the very end of that period), and then plunged 20% between the first and second half of 2016. But in 2017 sales started to recover, and by the second half of 2017 sales were back up by 7.8% compared to the same period the year before.
So, where sales declined and some buyers temporarily lost faith in buying here in Spain, the recovery has been remarkable in that the country has tightened some of its legislation making buying off-plan safer. This is one of the areas we see growth as with building work commencing by reputable developers the range of off-plan property available makes everything from exclusive villas, penthouse apartments and smaller 1 and 2 bed apartments an attractive choice for buying here in Spain.
There was a 13.4% increase as 128,990 Spanish home sales were registered in the Land Register in the first quarter of the year according to the latest property market report released by the Association of Spanish Property Registrars.
This volume of quarterly sales was noted as the highest in the last thirty-eight quarters, and you would have to go back to the third quarter of 2008 to find a larger increase. This shows a real confidence in the sales market even given that property prices across Spain grew by an average of 3.8% in this first quarter according to Tinsa.
Overseas demand hit a high of 16,833 purchases in Q1, which is up by 13.2% compared to the same period last year. Contemporary and stylish off plan developments are being started along the coast line offering everything from exclusive villas to contemporary sea view apartments catering for all taste and budgets. Spanish property is clearly still seen as a good investment by buyers from all over the world, and at the moment is being led by the British.
UK nationals purchased more homes in Spain than any other foreign nationality in Q1 2018, with 2,451 acquisitions in the period, followed by the Germans with 1,316, and the French on 1,290. As a result, the UK’s share of the foreign market was 14%, followed by Germany and France with just above 8% each.
Spain continues to appeal to foreign buyers despite potential hurdles like Brexit, showing that peoples desires to have what they want out of life outweighs what is going on in the world. With property a sound investment, property in Spain offers solid investor appeal as prices continue on an upward spiral and tourism here is ever popular.
Housing price data published recently shows that Spanish property prices rose faster than EU and Eurozone averages in 2017 according to the data from Eurostat the EU statistics bureau.
Average property prices in Spain rose by 7.2% last year, compared with 4.5% in the EU and 4.2% in the Eurozone. This shows the property slump is over making buying a Spanish property a good investment. With the range of off-plan developments now being constructed offering favourable payment terms, you can also be assured of getting a contemporary home that will have the benefit of a guarantee.
The highest increases in residential property prices elsewhere in Europe in the last quarter of 2017 occurred in Ireland (11.8%), Portugal (10.5%) and Slovenia (10.0%). Italy in contrast, reported the biggest decrease when prices fell by 0.3%.During the last quarter of 2017 property prices grew the most in Slovenia (3.7%), Croatia (3.2%) and Cyprus (2.7%), compared with the previous quarters data. The biggest quarter-on-quarter decreases were reported in Sweden (2.8%), Denmark (1.7%), Belgium (0.4%) and Finland (0.3%).
We have seen a strong start to this year here at Bromley Estates where the modern and contemporary developments whether apartments or villas prove to be popular as second homes. The Spanish property market had a strong start to the year with prices growing by 3.8% year-on-year in the first quarter of 2018 with Madrid reporting the most significant rise (17%), followed by Palma de Mallorca (14.7%), according to property valuation firm Tinsa.
According to the Instituto de Práctica Empresarial (IPE) house prices are forecast to grow across the country by an average figure of 6.1% this year meaning that whether you are looking to buy and rent out your property or just buy a second or third home – that property will be a real investment in a country with a fabulous climate that continues to draw in foreign visitors. Contact one of our team to see how we can help to choose the best location for the lifestyle you want.
Off-plan property sales are booming on the Costa del Sol.
The developments in southern Spain now are being built by tried and trusted developers with experience of choosing the right spot for views, location, amenities and value. If you are a golf lover this could be on a golf course, or a beach front property. It is this level of expertise in creating a development in the heart of the action that will prompt an excellent return on investment if you choose to sell or rent your property.
Using state of the art design and well-known architects, many of the new developments springing up in Andalucia are intimate well-designed residences that feature the latest in technology and eco design. Often incorporating solar or green energy they will mean lower bills and a greener energy footprint.
As agents, we ourselves work with experienced developers on ‘Our Exclusives’ and find that when a prime development is released it can be reserved in days. This is because the developers offer attractive payment methods meaning you can spread payments from reservation up to completion. This staged payment is perfect for some buyers who may not need to get a mortgage.
What’s more buying into a development early means you will often be getting a discount on what the final built price will be. This also offers you the choice of the best apartments within the development so bagging a prime penthouse or ground floor apartment with garden is easier earlier on.
Buying off-plan almost always means you can personalise your property to suit. Many developers offer extras too like a Jacuzzi on the roof terrace or swimming pool which can be incorporated into your property as it is built. There may also be a chance to negotiate extras like a furniture pack or membership to the local golf club.
Buying off-plan means just like other countries, your property will be under guarantee so any snagging problems can be dealt with free. This is not the case buying any standard property.
If all this sounds appealing talk to one of our team today who will show you a fabulous range of off plan properties one of which may be your dream home in the sun.
The Malaga region has been a popular place for holidaymakers for many years so to buy here makes sense. In 2017 the province registered 30,300 sales which is a 14.6% increase on the year before. This shows the region had the second highest number of sales per inhabitant in the whole of Spain.
Almost 30% of these homes were purchased by overseas buyers, placing Malaga among the most attractive provinces for the foreign buyer.
The Malaga figure almost doubles the Spanish average, which is 8.6 sales per thousand inhabitants. With a fabulous climate and great outdoors lifestyle you can see what attracts buyers here. Attractively priced property as well as a good selection of property types means you are likely to find the home of your dreams.
Malaga had the fourth highest number of sales with 26,436, behind Madrid (69,966), Barcelona (53,773) and Alicante (34,631) and ahead of Valencia (26,437), Baleares (15,799), Sevilla (14,663), Murcia (13,386), Las Palmas (11,682) and Tenerife (11,604).
In the whole of Spain, a total of 464,223 purchases were registered last year, which equates to a rise of 14.9% over 2016. Transaction data, both nationally and in the case of Malaga, are the highest since 2008.
Second-hand housing, which includes those owned by banks, accounted for 81.5% of sales in Malaga (in Spain it was 82.6%). That said it will be interesting to see how the market changes with so many attractive off-plan deals available in new build developments.
Meanwhile, the data shows the foreign buyer continues to be a key player in the sector, mainly due to the attractiveness of the Costa del Sol.
In 2017, overseas buyers bought almost 9,000 homes in Malaga, representing 29.6% of total sales. The percentage is somewhat lower than in other years (between 2014 and 2016 it moved around 34%) due to the gradual return of the national buyer’s market, but it continues to show the province’s allure for visitors.
Whether you are looking for a modern family villa or a lock and leave apartment we have sea view, frontline beach and frontline golf properties available that will inspire and excite you. Contact one of our team today to talk through your property requirements.
The Costa del Sol Malaga to Estepona railway line has been named one of the highest priorities as Spain looks to update its infrastructure. With rising numbers of tourist’s year on year and more people looking to invest in the country, transport links are highlighted as important for people to move around easily.
The Costa train line, with an estimated cost of €5 billion, has been promised on and off since the 1990s, but it has stalled due to lack of funding and a lack of agreement between Madrid and the Junta.
The train service, which would run from Malaga airport to Marbella and Estepona, may now be with us within a decade as Spain’s economy continues to be one of the fastest growing in the Eurozone, freeing up more capital and increasing investment ceilings.
Julián Núñez, president of SEOPAN – the Association of Construction Companies and Concessionaires of Infrastructure – says the government will most likely prioritise health and education over the next two years.
But he added: “The consolidated GDP growth and the progressive scale back of the deficit have created some space to increase public investment in infrastructure.”
He has therefore created a prospective investment portfolio for the government, listing the projects that are a priority to improve the country’s competitive edge and which will increase economic activity. Having been reduced by 58% since 2009, public investment in Spain is overdue and very welcome.
With the upturn in the property market, more people getting mortgages and more building work going on generally, the country is doing very well in an economic environment where many in Europe aren’t.
Whilst in Estepona plans have been completed for the Senda Litoral (coastal path) that runs through the district. This Is an excellent draw for walkers, hikers and runners as people love walking the existing stretches. The first new Estepona stretch to be announced is in the Arroyo Taraje area. Here a 130-metre-long paved walkway will be laid out and a 20-metre wooden bridge. There will also be landscaping and lighting.
The second announced stretch is alongside the Las Dunas hotel and will run for 130 metres. This will link up with the Hacienda Beach and Cabo Bermejo paths to create a completed stretch of over three kilometres. In nearby Manilva a viewpoint has been suggested for the start of the coastal path.