Now is the time to buy Spanish property

Now is the time to buy Spanish property, say 7 in 10 Spaniards, as confidence in the country’s real estate climbs.

71 per cent of those responding to a survey by Solvia and Kalvar TNS said that it is “good time” to buy property. The poll of 1,000 people asked for them to score their views from 0 (pessimistic) to 200 (optimistic), resulting in an average of 112, which suggests that domestic buyers think that the country’s property is an attractive investment – a marked turnaround from a few years ago.

Factors fuelling the upbeat sentiment include the fall in prices since the housing crisis, the fact that real estate is a stable asset and the recovering market, which now offers “real opportunities”.

Buyers, however, were more downbeat about their finances, with 61 per cent saying that now is now the right time for them to afford an investment, due to poor employment stability and a lack of savings.

With 35 per cent saying that prices are now rising and 43 per cent saying that prices are stable, though, for those who can afford propert, such as foreign investors, can be reassured by the spreading positive mood surrounding Spain’s property market.

 

Canary Islands: Spain’s safe haven for overseas investors?

11th November 2016

Investors seeking a safe haven during turbulent global times are increasingly turning to the Canary Islands.

New research from Kyero shows that the Canaries now feature as top of its top trending destinations across Spain, which the site attributes to investors seeking out the warmth of the islands during chilly winter months of Brexit-related uncertainty.

Corralejo, on the island of Fuerteventura, and Playa Del Ingles on Gran Canaria moved up to take the third and fourth positions during October in Kyero’s monthly ranking of Spanish property hotspots.

Richard Speigal, Head of Research at Kyero.com, comments: “Foreign buyers went sun chasing in October, with Kyero seeing a marked rise in enquiries for the Canary Islands. This is a normal pattern, but it comes at the end of a particularly good year for the Canaries. Foreign demand has become more price sensitive since the Brexit vote, and the Canaries are well placed to take advantage of tightened budgets. Local prices remain below average and have also suffered a less tumultuous history than other parts of Spain. Market stability and an agreeable climate at agreeable prices is a strong combination.”

The relative safety of the Canary Island property market is what makes it particularly attractive to risk-averse investors, according to the site’s team. The official House Price Index shows that the islands are one of the most recovered regions in Spain. Prices fell less sharply and recovered much more steadily in the Canaries than in the roller coaster markets of Madrid and Barcelona. The relative stability of prices holds strong appeal in the current environment of political and financial uncertainty across much of the world.

The international interest in property across the Canaries has been building throughout the year. Newly release figures from the Ministry of Development (Fomento) show that half of all house sales in Tenerife in Q2 2016 were to international buyers. The figure puts Tenerife on a par with the Balearics in terms of its appeal to overseas buyers.

While second homes in the Canaries have long been popular with Brits, Kyero’s October data shows that Italian buyers are on the brink of overtaking them as the dominant buyers in Tenerife, Gran Canaria and Fuerteventura. Only in Lanzarote do Brits look set to remain at the forefront of demand.
 

Booming Balearics lead Spanish property recovery

24th August 2016

The booming Balearics are leading Spain’s property recovery this year.

New figures from the National Institute of Statistics (INE) show that sales on the islands have surged 39 per cent in 2016, leading the rest of the country’s ongoing recovery. Indeed, 33,390 home sales were recorded in the country’s property register in June 2016, up 21 per cent compared to June 2015 and the fifth month of double-digit growth in a row.

Momentum is particularly evident on a longer-term basis, with sales up 17 per cent in the first half of 2016 compared to the same period of last year. Transactions have climbed, meanwhile, in 22 of the last 24 months – almost two years of uninterrupted growth.

On the same six-month basis, the Balearics are visibly racing ahead of the rest of the country, with the closest contender being Murcia, where sales have soared 28 per cent. Valencia, Madrid and Barcelona are also enjoying strong growth of 22 per cent, 20 per cent and 19 per cent respectively. Sales growth was lower in the Costa Blanca and Costa del Sol, with transactions up 12 per cent and 8 per cent, but positive figures are noted by Spanish Property Insight across the country.

The only negative figure was for sales of new build homes, which dipped 1 per cent year-on-year after two months of growth, although construction in Spain is climbing, while developers such as Taylor Wimpey reported rising sales in April 2016 compared to last year.

The builder is primarily focused on the Costa del Sol this year, with its recently launched Horizon Golf development. With the Costa del Sol welcoming 1 million visitors in May, up 11.8 per cent from last year, the builder is confident in the area’s international appeal.

Marc Pritchard, Sales and Marketing Director for Taylor Wimpey España, comments: “The Costa del Sol has always been a popular destination with second home buyers and its scenic golf courses and idyllic climate only enhance it as a favourite, not only in Spain but in mainland Europe. We are delighted to launch the newest property options available within our Horizon Golf development and look forward to introducing prospective buyers to all that La Cala Resort has to offer.”

On TheMoveChannel.com, meanwhile, demand for Spanish property hit a 10-month high in June 2016, with Spain becoming the most popular destination among overseas buyers for the first time since September 2015.

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