The Spanish property market is in better health in 2019 than it has been for over a decade. Transaction levels are up, domestic and foreign demand continue to rise and prices are steadily increasing. International demand is at record levels, with 25% more foreign buyers in Spain in 2018 than at the markets peak before the crash in 2008. Below boom-level property prices, rising employment and low interest rates continue to propel the European nations draw and sustained growth.
The figures below add to the widespread consensus that favourable market conditions are creating an opportune moment to invest in a Spanish property in 2019.
GDP in Spain rose by 2.5% in 2018, above the European average by 1.9% and among the fastest growing rates in Europe. Spain is the second most visited country in the world, with over 82.8 tourists arrivals in 2018, who spent approximately €89.9 million in 2018, up by 3.3% from the previous year.
Overall, 2018 saw a 28% increase in foreign investment, 12% increase in property sales, a buoyant job market and the highest employment rate in 10 years - with a job creation rise of 64%.
Costa del Sol/Malaga
Malaga airport now services flights from over 100 direct destinations and 25 countries. 19 million passengers passed through Malaga airport in 2018 - the highest figure ever recorded and up by 2.1% from 2017. Andalusia is also ranked among the top searched and reserved destinations on Airbnb worldwide. Unemployment levels went down by 13% on the Costa del Sol in 2018, with 118,000 new job creations within the region throughout the year.
Spanish Property Market
According to recent government statistics, 465,000 properties sold in 2018, the highest level in a decade and an 11% rise from the year before. In conjunction with rapidly rising sales transactions, property prices increased by 8.4% in 2018, the highest rise in over a decade, while prices still remain 24% lower than in boom years.
Costa del Sol/Malaga Property Market
Over 30,000 properties were sold in and around the region of Malaga in 2018, 11% up in the first 3 quarters of the year compared to the year before. 30% of these Spanish homes were purchased by foreign buyers; 16% British buyers, followed by Germans 7.7%, French 7.4%, Belgians 5.8% and Swedes 5%. Foreign investment in Spanish property totalled over 3 billion euros in 2018.
75% of all New Build Properties are purchased by foreign buyers, approximately 2,250 properties and 23% of all properties bought by foreigners.
Forecast for 2019
The Spanish economy is expected to continue to grow in 2019, with a forecasted 2.2% hike in GDP.
Tinsa forecasts prices will rise by 7%, with an expected 650,000 further properties to be sold over the course of the year. Due to the sustained increase in demand, oversupply in the market has decreased, balancing out supply and demand levels for the first time since the crash in 2008.