“In common with other resort areas, sales activity in the Costa Brava is traditionally at its least active in the first quarter, and 2017 has proved no different. Whilst the level of enquiries is up significantly on 2016 figures the volume of Lucas Fox sales transactions is actually down on 2016. Brexit has clearly had an impact and whilst there is still interest from UK buyers, the number of Brits purchasing second homes in the Costa Brava has decreased and concerns over the weakness of the Pound Sterling will almost certainly continue to cause uncertainty whilst Article 50 negotiations are ongoing.
The increase in enquiries from the United States can perhaps be attributed to the “Trump Effect” and it will be interesting to see whether demand from US buyers continues its upward curve during the rest of the year.
Demand for rustic and coastal property can be seasonal but has been more pronounced so far this year than in previous years. In the past 3 months we have seen a notable increase in demand for rustic properties – specifically village houses in prime locations of the Empordà, priced from €400.000 to €700.000. This can be attributed, in part, to the return of national buyers to the rustic market.
Meanwhile, interest in coastal properties has been modest with greatest activity at the lower end of the market (€300.000 – €600.000). So far this year interest in coastal properties in the €1 million plus price bracket has been minimal.
In general there is a lack of new product coming onto the market in prime coastal areas – particularly at the mid to high end. This may account, in part, for the lack of movement in the prime market.
Whilst government figures state that sales transactions in Girona are up 21% year-on-year, this is more likely the result of the sales at the lower end of the market and is not necessarily indicative of the performance of the prime market, either in coastal areas or inland.”
Partner, Lucas Fox Costa Brava
Costa Brava Property Sales Transactions
According to the National Institute of Statistics (INE), the number of property sales transactions across the Girona region, including the Costa Brava, has increased with a total of 1,725 sales transactions in the first two months of 2017 (for which the latest data is available). This is up from 1,429 in the same period in 2016, showing an annual growth rate of 20.7%.
Costa Brava Property Prices
According to leading property portal Idealista (which bases its figures on asking prices), the average property prices across the region of Girona ended the first quarter of 2017 on €1,793 per square metre, up 6.8% on the average price at the end of the first quarter of 2016. The average price changes varied in different regions with the greatest price increases seen in the sought-after area of Palamós, where Lucas Fox is soon to launch 48 new homes in Cala S’Alguer.
Lucas Fox Website Interest
Just over 20% of Lucas Fox website visitors looking at Costa Brava properties originated from Spain in the first quarter of 2017, a similar figure to the first quarter of 2016. The majority of international interest in Costa Brava properties continues to come from the United Kingdom (31.3% in Q1 2017 and 31.8% in Q1 2016) and the United States (12.3%, up from 6.3% in Q1 2016), followed by buyers from the Switzerland, France and the Netherlands.
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