The Spanish property slump appears to be over and reports are saying that property prices have recovered to pre-recession levels. Along the Costa del Sol there is evidence of activity regarding property development and construction with some previously uncompleted developments being bought up and finished ready for sale.
It’s reported that up to 20% of unsold homes built prior to the global recession in 2008 were sold in 2016 and a similar amount expected to be sold in 2017. Finally, excess housing stock is starting to move. Property prices for the whole of Spain rose 2.3% during 2016 and predictions are that within 2 years this will have risen to 5%. Clearly there are regional variations to these growth figures but finally there is positive news for the market. (Sources: Property Wire & Acuna)
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Who’s Buying?
Spanish Property Foreign Buyers
Spanish Property Foreign Buyers
The big news last year in relation to foreign property demand was the effect of the Brexit vote. It certainly had some impact on British purchasers, however the British still make up the largest percentage of foreign buyers ahead of the Germans and French. Overall property purchases by foreign nationals in 2016 was up 15% with the UK’s market share for buying property at 19% ahead of the Germans and French with 8% market share each.
Despite the demand for Spanish property by the British the effect in the fall of the value of the pound following Brexit has meant demand overall for 2016 increased by just 2%. Much of this was attributed to the fact that British purchases were up 50% Q4 2015 to Q1 2016, when the pound was strong against the euro prior to Brexit worries taking hold and demand falling. The biggest rise in demand has come from Dutch buyers where it has increased during 2016 by 33% ahead of Italians (32%) and Swedes (31%). (Source: Registradores)
Who’s Buying What?
So we know who’s buying but what properties are they buying and at what budget?
Perhaps unsurprisingly, the most popular reason for foreign purchasers buying Spanish property is as a 2nd home (46%) with the 2nd most popular reason being relocation (41%). The majority of buyers are buying houses (86%) over buying land (6%) and flats/apartments (2%). When looking at the amount of bedrooms, buyers are looking for 2/3 bedroom properties, which make up 69% of sales.
With regards to the price bracket in which buyers are looking, the majority of sales are in the bracket up to €200,000 with 81% of sales whilst prices up to €500,000 are seeing 17% and from here up to €1m just 2%. (Source: Rightmove)
In conclusion the Spanish market is starting to move again and the signs are as good as they have been in the last 8 or so years.
Brogan Properties
Phone from UK : 0843 005 9345
Phone from Spain : 952 553 860
Email : info@broganproperties.net
