Lucas Fox has released its Market Reports for 2016. These in-depth in-house dossiers include detailed information about the property landscape in the company’s 8 key regions – Barcelona, Maresme, Sitges, Madrid, Valencia, the Costa Brava, Marbella – Costa del Sol, and Ibiza.
2016 has been a key turning point in the recovery phase of the Spanish property market with sales transactions across almost all key regions gaining momentum. Lucas Fox’s business continued to grow and expand throughout 2016, with the number of sales transactions showing an annual growth rate of 31%. There is a high level of interest in New Development properties, with almost 50% of the properties sold by Lucas Fox Barcelona in 2016 being New Development projects and this percentage is expected to increase throughout 2017 across all its regions.
Regional highlights from the Market Reports are:
- Lucas Fox Barcelona sold 69% more homes during 2016 than during 2015.
- Barcelona city averaged 3,827 transactions per month in 2016, up from an average of 3,148 in 2015, according to the National Institute of Statistics (INE), showing an annual growth rate of 22%.
- Property prices for all of Barcelona averaged €3,879 per square metre by the end of 2016, up €487 over the average at the end of 2015, showing an annual growth rate of 14%. (Idealista)
- Lucas Fox buyers looking for a primary residence have dominated the mid-level market in 2016, with 37% buying property as a main home.
- The sought-after district of Eixample Right has seen the most growth in demand and price increase, mainly due to the limited amount of exclusive high-end renovation projects available.
- Demand for Lucas Fox rental properties in Barcelona is on the increase. These homes are mainly located in Eixample, the Zona Alta and the Old Town.
- Lucas Fox Maresme saw an 88% increase in the number of sales during 2016 compared to 2015.
- Local buyers now account for nearly half of all Lucas Fox Maresme sales. British sales have dropped however from 25% in 2015 to 13% in 2016 due to the Brexit vote and the subsequent weakening of the Pound.
- Townhouses, sea view villas and older properties in desirable residential areas are currently most in demand.
- The number of New Developments is expected to increase during 2017 as is the volume of transactions under €1 million.
- Sitges average property prices ended 2016 on €3,744 per square metre, up €163 per square metre over the end of 2015 average, representing a 5% annual growth rate. (Idealista)
- A third of Lucas Fox Sitges sales were to local buyers, up from 2015 figures.
- There have been fewer enquiries from British buyers during 2016, due to the prospect of Brexit.
- Sitges buyers are increasingly interested in the potential rental income a property can generate, not just in the summer months but throughout the year.
- The number of property sales transactions in Madrid showed an annual growth rate of 12% in 2016. (INE)
- Average property prices in Madrid have risen consistently since midway through 2014, ending 2016 on €3,779 per square metre, an annual growth rate of 6%. (Idealista)
- The sought-after districts of Chamartín and Chamberí ended the year on €4,072 and €4,060 per square metre, showing annual growth rates of 7% and 8%. (Idealista)
- Foreigners spent just over €47 million on new builds and newly renovated properties in the first three quarters of 2016, showing an increase of 9% over the same period in 2015. (Spanish Department of Development)
- Prime located renovated apartments in classical buildings between 150m² and 200m² and priced between €1 million and €1.5 million are currently most in demand.
- The number of sales transactions in Valencia in 2016 increased by 16% over 2015, averaging just over 1,800 sales per month. (INE)
- The total value of property transactions in Valencia amongst foreign buyers for the first three quarters of 2016 grew by 13% (€197.5 million) over the amount of trading for the same period in 2015. (Spanish Department of Development)
- Valencia property prices went up by 5% and by 4% in the Old Town during 2016. (Idealista)
- Towards the end of 2016 there was a significant rise in the number of Lucas Fox website visitors looking for properties in Valencia, due to its growing popularity as a lifestyle investment hotspot.
- The number of property transactions in the Girona region increased by 15% year-on-year, with 8,822 sales in 2016. (INE)
- In the first three quarters of 2016 foreigners purchased €356.41 million worth of property in the Girona and Costa Brava area, compared with €316.73 million in the same period of 2015, an annual growth rate of 12.53%. (Spanish Department of Development)
- A quarter of Lucas Fox buyers bought homes as a primary residence in the region, up from 14% in 2015.
- National buyers accounted for a quarter of Lucas Fox Costa Brava sales in 2016.
- There was a significant increase in sales to US and Canadian clients, which accounted for over 15% of Lucas Fox total sales in the Girona and Costa Brava during 2016.
- The average price of properties in the sought-after towns of Palafrugell, Tamariu and Llafranc was €2,065 per metre by the end of 2016, up from €1,987 per square metre in 2015 (an increase of almost 4%). (Idealista)
Marbella – Costa del Sol
- The number of property transactions in Málaga, which includes Marbella, showed an annual growth rate of 7% in 2016. (INE)
- The total value of property transactions across the Málaga region amongst foreign buyers for the first three quarters of 2016 grew by 14% over the amount of trading for the same period in 2015. (Spanish Department of Development)
- Enquiries from British buyers have fallen significantly due to the Brexit vote.
- Marbella’s average property prices ended the year on €2,374 per square metre, €8 below the price at the end of 2015. Average property prices in the key districts of Benahavís and Estepona, however, increased by 7% and 8% respectively. (Idealista)
- A third of Lucas Fox Marbella sales went to Middle Eastern buyers and two-thirds to Northern Europeans.
- The number of property transactions in the Balearic Islands in 2016 showed an annual growth rate of 31%. (INE)
- 71% of Lucas Fox property buyers in Ibiza in 2016 purchased properties for use as a secondary residence.
- 2016 continued to see a large proportion of Lucas Fox property buyers coming from Western Europe, including Germany, the United Kingdom and Belgium.
- Around 70% of Lucas Fox clients intend to rent their property out during the summer for at least a couple of weeks due to the high potential rental income.
- Foreigners spent €77 million on new build and reformed properties in Barcelona in the first three quarters of 2016, an increase of 10% over the same period of 2015. (INE)
- Just under half of Lucas Fox Barcelona sales were for New Development projects in 2016.
- Lucas Fox currently has over 350 new homes for sale across all its regions with a value of more than €250 million. Lucas Fox is expected to take on more than 1,000 new homes in Barcelona with a value of more than €550 million during 2017.
- The total value of newly renovated homes sold by Lucas Fox last year reached €100 million across all its regions with an average price of €720,000 (€6,200 per square metre).
- 44% of Lucas Fox buyers of Barcelona New Developments purchased for investment reasons and 48% bought as a second residence. 30% of buyers were Spanish and 48% from Northern Europe.