In all markets, renewed confidence amongst buyers, low prices and the Spanish banks’ willingness to offer competitive mortgages is attracting increasing numbers of new buyers, and in the major cities, international buyers are now beginning to compete against local buyers to secure the best properties in prime locations. In the report, Lucas Fox founding partner Alexander Vaughan describes the recent turnaround in the Spanish property market as nothing short of ‘spectacular’ as people’s faith in the market is slowly being restored.
Other key points:
- In Barcelona, 2015 is expected to be the most significant year of recovery for the prime residential property market in the past seven years. Prices have stabilised in the past 12 to 18 months, and international interest for turnkey properties is forcing up demand, alongside renewed confidence amongst local buyers.
- In Maresme, whereas in previous years local buyers accounted for as little as 20% of Lucas Fox’s sales enquiries, this figure is now closer to 50% and there has been a substantial increase in the number of sales transactions to local clients.
- In the Costa Brava, sales in the first half of the year have been dominated by Northern European buyers – British, French, Swiss, Dutch and Scandinavian clients being the most active.
- In Sitges, the prime property market has seen increased activity in 2015. In the first two quarters of this year, twice as much property was traded by Lucas Fox Sitges as in the same period in 2014.
- On Ibiza, while national averages of property prices continued to decline slightly throughout 2014 and are levelling off in 2015, average prices in Ibiza have seen increases since the start of 2013.
- In Marbella, sales have increased across the region, leading to a shortage of good quality properties in prime locations. Turnkey projects are selling so fast that Lucas Fox is seeing regular price increases of new off-plan properties coming onto the market.
- In Valencia, the first quarter of 2015 has seen an increase of 14% for property re-sales, a sure sign that the sector is becoming stronger.
- In Madrid, the property market continues to attract more and more investment from both national and international investors. Lucas Fox data suggests that 60% of clients buy for investment purposes and 20% for the ‘Golden Visa’