The Spanish Property Market Is Getting Back on Track
Interest in the Costa del Sol is enjoying a revival, and it’s putting the property market in Spain back on track.
Recent reports indicate that Spain is once more the top destination for mortgage requests. During the second quarter of 2015 it accounted for 45% of overall property demand.
The rejuvenated property market also coincides with a 1% growth in the Spanish economy. A 3.3% growth is anticipated for the year, and analysis by the Olive Press, an English-language Spanish news site, suggests that there will also be a 2 to 3% increase in property values.
Buyers are coming from all over Europe. Demand from France has grown substantially, thanks to an increase in property taxes there, and Scandinavian buyers continue to show strong interest in available investment opportunities. The UK remains at the top of the purchasing crowd, with the strong pound enabling some excellent deals.
The Spanish land registry, Colegio de Registradores, reported that during the first half of 2015, 19.8% of all foreign purchases were made by UK residents. 750,000 British citizens officially reside in Spain, with their preferred investment locations because holiday locales such as the Canary and Balearic Islands, followed by Andalusia, Catalunia, and Murcia. Interest is currently growing in the northwestern area of Galicia, where the lifestyle is quieter and prices reasonable.
Although now is a good time to sell, experts are warning that sale prices won’t be as high as they have been in the past. Properties that have been priced correctly and according to current conditions are still valued at 35 to 40% less than they were when the market reached its zenith in 2007-08.
Certain inland areas of Spain, such as Navarra, have properties available at prices approximately half what they were before the crisis. In popular coastal provinces such as Andalucia, Murcia, and Valencia, homes still remain anywhere from 20 to 25% lower than they were during the pre-crisis days.
By current estimates it will take years for the Spanish property market to make a significant price jump, so for sellers who want to free up available funds, the present is as good a time to sell as any. Anyone who intends to purchase another home in Spain or the UK will be able to redress any shortfall if they make sensible buying decisions, especially if they are also up-sizing.