Spain’s property market continues to show signs of warming up this summer, with sales up in June.
New figures from the General Council of Notaries show that property sales jumped 7.1 per cent year-on-year to 42,330, which Notaries highlight as revealing the “underlying trend towards recovery in the property market”.
Mortgage signings also jumped 13.3 per cent to 18,904, with the average mortgage value up 0.4 per cent to €128,480.
The rising sales, though, were not quite enough to push up overall prices in June, with the national average sales price hitting €1,290 per square metre, down 1.9 per cent year-on-year. Cities and coastal hotspots are seeing prices either stable of climbing, though, as demand from buyers remains mostly concentrated in those areas.
Spanish home sales to top 400,000 in 2016
9th May 2016
Spanish home sales will soar past the 400,000 mark this year, experts have predicted.
KPMG, Deloitte and PwC all forecast strong growth for Spain’s property market in 2016. Speaking at a recent event, they predicted that Spanish home sales will hit 440,000 this year, up between 10 per cent and 12 per cent from last year. Transactions are also forecast to total over 20,000 million euros, up from 18,000 million euros in 2015.
Local demand is being boosted by economic growth, as well as promising employment figures and low mortgage rates. Overseas investors, meanwhile, have been eyeing up Spain for several years now, with PwC ranking Madrid as the third best European city for investment in 2016. Low interest rates and bottomed out prices, not to mention the country’s evergreen tourism industry, are attracting more and more foreign buyers.
Brits continue to lead the way, making up 21.34 per cent of all foreign home purchases in Spain last year, followed by the French (8.72 per cent) and the Germans (7.33 per cent). Belgians are stepping up their investments too, with more than 2,900 buyers from the country snapping up Spanish properties in 2015, an average of eight purchases a day – taking their market share to 6.26 per cent.
The Association of Registrars’ Real Estate Statistics Yearbook for 2015 emphasises the importance of foreign buyers, who accounted for 13.2 per cent of sales last year, the seventh year of growth in a row – and significantly higher than the 4.2 per cent that was recorded in 2009.
Popular tourist hotspots are the most sought-after among investors, with the Balearics making up 35.6 per cent of total sales, followed by the Canary Islands (28.1 per cent) and Valencia (26.4 per cent).
Barcelona-based agency Lucas Fox highlights Ibiza as a key player in the Balearics’ booming appeal. In the next five years, the appeal of Ibiza as a luxury brand is set to become a global trend, forecasts the firm, attracting increasing numbers of buyers from the US, Asia and the Middle East, thanks to its new ‘Super Port’ and a growing number of upscale restaurants, designer shops and 5 star hotels.
According to recent market reports by Lucas Fox, prices have risen on the island by 23.6 per cent in the last year, while sales doubled in 2015 compared to 2014, with an average transaction price of 1.2 million euros.
To meet growing demand, the company has now opened a new Property Lounge in Santa Eulalia, which is home to seven real estate professionals. (Another is scheduled to open in Valencia in the next month.)
“The rental market on Ibiza is going through the roof, which in turn has an effect on prices and demand for luxury homes,” comments Lucas Fox Ibiza’s Jason Ham. “This is happening all over the island, not only in the areas that are normally in high demand or exclusive such as the southwest.
“Due to the continued strength of the pound against the euro for much of late 2015, there was strong interest from British buyers, thanks also to increased confidence in Spain as a whole, together with the strengthening of the British economy,” adds Ham, who says that London is providing a “constant stream” of enquiries.Google+