Spanish Property Market – Latest Trends
Sales of Spanish property is reported to have risen by over 3% year-on-year, according to figures published recently. The boost to the Spanish economy is likely to increase it’s attractiveness to foreign investors from outside the traditional markets of Britain and Germany. The average purchase price of a property in Spain and it’s islands reached 230,00€ in June 2017. Analysis shows great variation between regions of the country, with San Josep De Sa Taliaia in Ibiza experiencing an average rise in property value of 22.9% and real estate in Puerto Pollensa, Mallorca increasing in price by almost 23%.
The Patja D’Aro region of Gerona and Tenerife’s Costa Adeje were the overall frontrunners. Both showed price rises of more than 30% whilst, traditionally attractive areas on the mainland such as Marbella in Malaga, saw falls in value of 4.2%. Even within regions of mainland Spain fluctuations can be clearly seen. The coast of Mijas, also in Malaga, showed a 21.6% increase and Benahavis enjoyed a rise in house value of 23.6%. The trend seems to show growth in areas of development and future potential for tourism, favouring up and coming destinations, at the expense of the more established and wealthy resorts.
In the exclusive Andratx region of Mallorca for example, average asking prices have dropped by more than 16% year-on-year, compared with an increase of over 7% across the island as a whole. A somewhat puzzling set of statistics. However, it undoubtedly proves that the international property market in Spain continues to flourish. More than 21,000 Spanish properties were sold to overseas buyers between January and March 2017 with figures indicating that well over 80,000 homes will be sold to foreign nationals before the end of the year. Alicante remains the most popular region for foreign investment with 51.4% of all sales classed as international.
That’s followed by 46.5% in Santa Cruz de Tenerife, whilst the Balearic Islands come in third at 34.2%. House prices in areas such as Alicante on the Spanish mainland have continued to increase over the past year. The rate of the rise in value fell to just 1.6% in June, producing a significant shift in overall growth, whilst prices in the Balearics have continued to climb steadily. The foreign investment picture is looking good for Spain with Government figures showing that almost one-in-five properties throughout the country are sold to non-domestic buyers. In regions where tourism thrives this figure is much higher and looks set to continue on a path of steady acceleration.
Fluctuations across regions of Spain reflect a break from tradition as the Spanish market adjusts to changes in its international clientele. A stable rise in house prices, coupled with continuing demand and a recovering economy, will secure Spain’s place as one of the safest and most lucrative zones for foreign investment. As for the Balearic Islands, their appeal has never been stronger, easily accessible and uniquely attractive their friendly, coastal resorts and stunning rural provinces provide a diversity of properties for all budgets that will keep them at the forefront of Spain’s surge in popularity.