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.
Throughout the year we have been looking how the market is performing compared to previous years. Thanks to easier access to financing, a growing economy and an improved job market 2017 is turning out to be a pivotal year for the Spanish property market recovery. Demand for Spanish property remains high, the new mortgage market is very active and property prices are rising.
The first positive signs of general recovery started showing in 2014 and the market has been quietly growing from strength to strength in that time. Whilst this has been happening buyers from outside the country have also been growing in confidence seeing tougher regulations come in regarding off-plan purchases and this in turn is giving a real boost to professional developers who can now confidently build.
We have certainly seen an upturn this year in high quality developments and our customers are snapping up good deals on off-plan properties as buying in Spain still represents excellent value meaning that second home or retirement home, investment property or holiday rental you had your eye on still provides a fabulous opportunity.
Some 40% of property sales take place without a mortgage according to a well known national Property Index and many of the mortgages granted are now fixed rate meaning buyers know where they stand. Developers too, offer deals that mean stepped payments make buying off-plan properties more affordable.
Last month the Bank of Spain summarized the country’s housing market in a report forming part of its quarterly review. In some areas property prices have fallen as much as 45% from the boom time. Over the last three years the market has been gaining momentum and property prices in Spain have risen 16% according to the Bank of Spain.
During this time investment in Spanish housing has grown by an average annual rate of 1.5%. There has been an emphasis on responsible lending and this in turn is leading to a real confidence in the market that is sending a ripple effect from architects to developers, agents to buyers.
Development around the Costa del Sol is increasing at a steady rate showing that interest in the area is well-founded. Developers McArthurGlen are starting construction of a huge designer outlet mall which will be located adjacent to Plaza Mayor Shopping centre, the city’s most visited shopping centre.
Plaza Mayor receives over 10 million national and international shoppers each year and the addition of this new shopping outlet is expected to attract even more crowds to enjoy the bargains.
Once completed the outlet is expected to be home to over 170 brands including some luxury and designer brands alongside local and international brands offering discounts between 30-70%.
The outlet mall is expected to generate employment for over 1000 workers in the region and the 30,000 sq metre of retail space is expected to cost around €115 million. McArthurGlen Designer Outlet Malaga is situated in a prime location with around 3 million consumers living within a 90-minute drive and over 10 million visitors coming to the Costa del Sol region every year. The new centre will be located just 3 minutes by train from Málaga International Airport, through which over 14 million passengers pass every year.
To reflect local Andalusian architecture the outlet mall will be open air village style and will have landscaped walkways, dancing fountains, a central luxury plaza, children’s playground facilities and 4,350 parking spaces.
McArthurGlen have shopping outlet villages across the world and this one in Malaga is in a prime position for people all over Andalucia to enjoy whether it is a day trip or popping in after collecting or dropping guests at the airport.
With the potential further development of the port area to make room for mega-yachts, Malaga is firmly positioning itself as a force to be reckoned with over and above being a city of art and culture.