Sales of prime Spanish property jumped by one-third in 2016, fuelled by a boom in demand for Barcelona real estate.
The Catalonian city, which was one of the most sought-after locations on TheMoveChannel.com in the fourth quarter of 2016, saw sales jump 73 per cent year-on-year, according to luxury agent Lucas Fox, pushing up overall transactions by 31 per cent.
With demand outpacing supply in both Barcelona in Madrid, prices are on the up. Indeed, prime property values increased by 4 per cent across Spain in 2016, says the “cautiously optimistic” Lucas Fox, which forecasts that momentum is expected to continue this year.
“The growth of the economy, coupled with low financing costs, good potential for profitability from rents and capital growth will continue to drive sales throughout 2017,” comments Lucas Fox co-founder Alexander Vaughan. “This upward trend is not limited only to new build homes, sales of second-hand properties will continue growing in 2017, fuelled by the return of mortgage credit and low interest rates.”
In Barcelona, the firm anticipates the release of approximately 1,000 new build properties, with an estimated value of 400 million Euros.
“We anticipate an increase in prices of up to two digits in the most sought-after areas of the city centre,” says Rod Jameison, Lucas Fox Head of Operations. “In the case of Madrid, we expect a higher volume of transactions for investment purposes as well as for the Golden Visa. As a result, prices will continue to rise steadily, although they are still between 20 per cent and 30 per cent below the peak of 2008.”
Lucas Fox projects that British buyers will continue to be active in the market, with UK investors accounting for 20 per cent of the market share in 2016. However, there is also rising interest from the Middle East and the USA, with the latter taking advantage of improved spending power, due to the strengthening dollar.
US interest rising in Spanish property?
19th December 2016
US interest in Spanish property has increased in recent months, according to agents.
A number of destinations have seen demand rise from American investors in the wake of the US election. While initial searches appeared to be driven by those looking to leave the country after Donald Trump was voted into the White House, Trump has since boosted confidence in the American economy and also strengthened the dollar. The latter has bolstered spending power for American investors overseas, making property in Europe more affordable.
The number of searches for property for sale in Spain on estate agency Lucas Fox’s website from the US increased by 25 per cent in the four weeks following the US elections compared to the previous four weeks.
“It is still early days to see whether this will be a consistent trend,” comments Lucas Fox co-founder Alexander Vaughan. “The US elections seem to have provoked a similar spike in interest for Spanish property as the EU referendum result did for Brits. In the weeks following that result, Lucas Fox received numerous enquiries from disillusioned British citizens contemplating relocation to Spain for either personal or business reasons.”
Barcelona is the most sought-after destination – the number of enquiries received from US citizens looking for homes in the Catalan capital went up by 175 per cent in the month after the elections, while enquiries for Madrid properties went up by 50 per cent.
Latest sales figures from Lucas Fox reveal positive trends with the number of transactions up by 30 per cent in the period between January and November 2016 compared to the same period last year. Barcelona province has seen the most significant increases. Sales transactions in the Catalan capital went up by 81 per cent and in Maresme, (the region just north of Barcelona city), by 150 per cent. The number of sales transactions went up by 140 per cent in Madrid.Google+