Agents expand as spanish property sales soar
Calpe, Costa Blanca Photo: Lugaresparavisitar
Spending power
Spanish property sales have soared in the past year, as Brits and other buyers take advantage of affordable prices and a weak euro. The pound recently reached a seven-year high against the single currency, boosting the spending power of British buyers on the Costa Blanca and in other popular hotspots by 15 per cent in 12 months.
The nation raced to the number one spot in TheMoveChannel.com's Top of the Props chart in February 2015, the second time it has been the most popular country on the portal within three months. At the same time, Spanish destinations have dominated Rightmove Overseas' Top 10 Climbers table, which tracks search activity across all country listings.
"This matches findings from our most recent Quarterly Index, which puts Spain as the most popular place to buy," says Angelos Koutsoudes, Head of SpainBuyingGuide.com.
According to recent figures from Spain's Property Registrars, foreigners accounted for 13.88 per cent of all property purchases in 2014, the highest level on record. Britons were the largest group of all foreign nationals buying in Spain, accounting for around 17 per cent of all non-Spanish purchases last year.
"The favourable exchange rate will be one factor driving growing interest in the Spanish market," continues Koutsoudes, "but there could also be the realisation that prices in hot spots on the Costas won't remain at bargain levels forever."
Indeed, Spain's Housing Ministry reported a 0.5 per cent increase in average house prices between Q3 and Q4 last year, fuelled by resale purchases. Alicante Province, home to the Costa Blanca, saw the highest price growth in this period, namely 2.1 per cent, and along with the Costa del Sol remains the most popular market for Brits.
"There's also more pressure on British vendors in Spain not to drop their prices, given the weaker euro means less sterling when they repatriate the proceeds of a sale," Koutsoudes adds.
Expanding agents
Agents have also seen interest soar in the past 12 months. Engel & Völkers, known for its expertise in the luxury sector, announced a 60.7 per cent leap in sales in 2014, with a total sales volume of 699.25 million euros, compared to 435.1 million in 2013. In terms of transaction numbers, the agency brokered 1,071 deals in 2014, up 77.6 per cent year-on-year.
Now, E&V is expanding to meet demand. The company is looking to recruit a further 2,000 agents in 2015, as part of a "major push" in Spain. In 2014, the agency opened 14 new establishments in the country, with 12 residential shops in key locations including San Sebastián, Vigo, Tarragona, Benidorm, Calpe, Denia and various areas of Madrid.
Philipp Neimann, Managing Director of Engel & Völkers EMEA, says: "Spain continues to be a major market for the company at an international level. Last year, we opened two key Market Centres in Madrid and Valencia with a total investment of 4.5 million Euros. We currently have 66 residential shops throughout Spain and we envisage great potential for business here".
John Taylor, another prime agency with 19 offices worldwide, has also opened a new agency in Madrid. Formerly operating under the German brand, the Madrid office is now fully operational under the John Taylor name.
Strategically located in the Salamanca area known as the "Golden Mile", Taylor's new office is part of the company's own expansion strategy, following its alliance with US luxury real estate group Corcoran.
British boom
In addition to Madrid's appeal to European markets, the company also expects to open the door to South American buyers in the future. British buyers, though, will spearhead the market's recovery, with Salamanca, Chamberi, Justicia and Chamartin particularly popular within the capital.
Ivan Barrondo, Managing Director of the office, comments: "Due to the strong pound, Spain is a very attractive destination for Brits, and purchasing power has increased by 15 per cent in one year. Aside from value for money, Brits are attracted to Spain for the excellent quality of life and the safe long term investment, which has culminated in over 1 million properties in Spain being owned by British people.