Sales of existing spanish homes jump more than 50pc

Anocheche, Costa del Sol Photo: Antonio

Sales of existing Spanish homes have rocketed by more than 50 per cent in the past 12 months. New figures from the National Institute of Statistics show how much the demand for Spanish property has soared in the past year, as overseas buyers take advantage of the weak euro and bottomed out prices.

While sellers of homes are flexible enough to negotiate a bargain, though, Spain's new build market is suffering from a lack of supply.

Overall sales jumped 15 per cent year-on-year in February 2015. The rise was fuelled by a soar in resales, which rocketed 52 per cent in the 12 months to March 2015. Sales of new build homes, though, saw sales fall 30 per cent annually.

Mark Stücklin of Spanish Property Insight comments: "It’s reasonable to assume that overall sales would have been even higher if the new build inventory was more attractive."

A total of 26,451 home sales were registered in February 2015, down 11 per cent from January 2015. Sales also remain lower than 2013, when the end of tax breaks stimulated sales ahead of the money-saving deadline.

The gap between the new and existing home market is particularly notable in areas such as the Balearics, where sales of new homes fell by more than 40 per cent, while resale activity rose by 82 per cent.