Spanish property sales up 48pc
Marbella, Costa del Sol, one of the most popular areas for Spanish property Photo: Mikko Helander
Data from the National Statistics Institute (INE) shows that sales of Spanish property have surged by 48 per cent in the first quarter of 2014 compared with the same period of 2013.
The figures mark the start of what has been a positive year for Spain, with prices dipping 1.6 per cent year-on-year during the same period, the smallest drop in several years, and values even climbing in several locations.
Property sales have continued to increase this summer, according to the general council of notaries (Consejo General del Notariado), with the number of Spanish homes sold up 16.3 per cent year-on-year in June 2014.
Activity is driven by foreign buyers, who are increasingly attracted to the affordable bargains available. Indeed, prices have fallen by at least 40 per cent from the market peak, according to valuations firm TINSA. Now, though, the market is bottoming out, with house prices dipping 3.03 per cent year-on-year in the second quarter of 2014, the lowest annual decrease recorded since the same period in 2008.
A new study from Aguirre Newman reveals that construction has also resumed in the popular area of the Costa del Sol, a key driver in sales activity; four new developments in the region have started in the last year after three years of no development at all.
The average flat in the Costa del Sol costs €196,956 for two bedrooms, while the average home costs €393,520 for three bedrooms, says the company, marking a 5.7 per cent and 9.7 per cent price drop respectively in the past year. Nonetheless, Aguirre Newman predicts that holiday home prices in such popular coastal areas will stabilise this year. And while local buyers may be hindered by low mortgage accessibility or low employment levels, 90 per cent of foreign buyers can afford to purchase a home without financing, meaning that overseas investors are perfectly positioned to pounce on the opportunity.
Indeed, transactions jumped 8.8 per cent in June 2014 compared to June 2013, says the INE. This is the fourth month that transactions have risen annually in a row, with sales up 22 per cent, 5 per cent and 5.4 per cent in the preceding three months.
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Robert Stones, Managing Director of global property agent Target Markets, who are now offering luxury Marbella apartments with 100 per cent finance, says that they have also seen demand for Spanish property soar.
“We have seen a significant rise in interest from buyers in Spanish property, particularly in traditional holiday hotspots, such as the Costa del Sol,” he tells TheMoveChannel.com.
“British buyers continue to be the most active, with record high exchange rates between the pound and euro as well as low prices making now a perfect time to pick up that Spanish holiday home.”
But Spain’s appeal is stretching further afield, as the Golden Visa, which offers residency permits to non-EU nationals for a minimum investment of €500,000 in real estate, starts to make an impact.
“We have also seen demand rise from buyers outside of the EU, from the Middle East and Russia, following the introduction of the Golden Visa residency scheme, which is now gathering momentum,” Stones adds.
“The consensus across price indices is that the market is now nearing bottom, and even recovering in some places, meaning that it is more important than ever for investors to carefully research which location they purchase property in. The short-term and long-term future, though, is certainly positive for what has always been one of the most beautiful and sought-after lifestyle destinations in the world.”
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