According to the latest market reports, the property market in Spain continues to show signs of steady and gradual growth. The Spanish property market has now expanded in every quarter over the last four consecutive years, and not only continues to show signs of steady and gradual growth, but evidence that it is also gaining momentum at a sustainable rate.
Aided by significant international demand, affordable prices, a rise in support from a variety of financial institutions and a flourishing construction industry, statistics from the last quarter reveals an opportune moment to invest in Spanish property today.
Here is a breakdown of the latest statistics and trends:
Expanding Spanish Economy
Spain's economy grew by 0.9% in the second quarter of 2017, surpassing its pre-crash peak and exceeding most of its European counterparts. The Spanish government also forecasts a 3% growth in the economy by the end of 2017.
Thriving Tourism Industry
Spain will register 5 consecutive years of record-breaking tourism figures by the end of the year, according to new data from Exceltur, a tourism industry group. Visitor figures are expected to reach an incredible 80 million this year alone, representing an increase of 4.1% compared to 2016 when the figure hit 75 million. The British remain the most dominant group of visitors to Spain, despite Brexit, followed by an increase in American visitors, up by 19%, and also Asian visitors, which saw a 35% increase since last year.
Soaring International Demand
Spain's warm climate and laid back way of life are major draws for international property buyers, so much so that foreign buyers now account for 13.25% of property sales in Spain, according to the Spanish Registrars.
Spain is the top European country for international property buyers. According to the latest Top of the Props index by The Move Channel, Spain accounted for one in ten online enquiries, making it the most searched for country in the world for the second time since February, when 14.02% of all enquiries on the portal were for Spanish property.
Foreign demand for properties in Spain grew by 15.6% in Q1, representing 14,870 property transactions. Although British buying activity fell by 23.6%, the UK's decision to leave the EU and the aftermath of falling exchange rates largely to blame, it would seem that the British love affair with Spanish property is not over. In total there were 2,150 properties sold to British buyers in Q1, accounting for 15% of the foreign market share and making Brits still the largest group of foreign buyers in Spain. French buyers made up 10% of the foreign market, with 1,433 property purchases, followed by German buyers who purchased 1,137 properties, accounting for 8% of the market share.
BBVA believes that more than 500,000 Spanish homes will be sold in 2017, surpassing an annual threshold last breached before the economic downturn in 2007. The bank forecasts a 10% increase in sales by the end of 2017 compared to last year.
Rising Property Prices
The median asking price in Spain has now reached €230,000, according to Kyero's June 2017 data, representing a year on year growth of 3.3%.
"Spanish property's affordability is at its most appealing in 2017, as bottomed-out prices mean that capital growth is possible for investors," commented CEO of TheMoveChannel.com, Dan Johnson.
Regional variations are still very noticeable, with prices being pushed up by demand for property in urban areas such as Madrid and Barcelona and coastal regions like Andalucia. Madrid, Andalucia, Cataluña, the Balearic Islands and the Canaries all reported property price increases of over 2%. The average property price increase for regional capitals is 4.2 % – above the general average – and 2.4 % for properties near to the Mediterranean coastline. Prices also vary from area to area within regions. Prices in Mijas Costa shot up by 21.6% and Benahavis is currently enjoying an asking price increase of 23.6%.
Spanish property price data from valuation firm Tinsa reveals that the average selling price in June this year was 2.3% higher than in the same month last year, representing the tenth month of continuous house price increases.
Spanish bank, BBVA expects an average national price rise of 3% by the end of 2017, stating in their latest report that 2017’s typical price-per-square-metre will reach €1,570.
Rise in Mortgage Approvals and Demand for New-Build Properties
The new build property market has been truly revived and is expected to maintain steady growth thanks to a sharp rise in demand for new property in Spain. Building licenses have increased by 2.4 % in the past year, actual sales were 23% higher year-on-year as of May, and a 10.4 % increase in mortgage approvals was registered in April.
Construction will start on 80,000 new homes across Spain this year, driven by a steady growth in demand for new-build properties, according to a recent survey by property portal Servihabitat.
Buyers are opting to purchase off-plan properties in a bid to secure some of Spain's best locations and capitalise on the high buy-to-let potential that Spain's thriving tourism industry enjoys. In Andalucia, property developers are meeting the rise in demand for modern, new-build properties and the construction of new developments and luxury villas is evident along the coast.
Institutional and Large-Scale Investment Up
US asset manager, Blackstone Group LP is the most recent large-scale institutional investment firm to claim a major stake in Spanish assets, in a bid to benefit from Spain's flourishing economic climate. In 2018, Blackstone will own approximately 30 billion euros worth of Banco Popular's real-estate assets, the largest stake of a real estate portfolio ever sold in Spain and among the largest in Europe overall.
Domus Venari offer a large selection of high quality modern new build apartments, penthouses, townhouses and villas on the Costa del Sol to suit a variety of budgets and needs.Get in touch with us today to speak with one of our consultants in your language.