Lucas Fox has released its market reports for the second half of 2015. These in-depth in-house dossiers include detailed information about the property landscape in the company’s 8 key regions – Barcelona, Maresme, Sitges, the Costa Brava, Ibiza, Madrid, Valencia and Marbella.
2015 proved to be a pivotal year for Spanish property. In all Lucas Fox regions, the number of transactions increased. Official data shows that property prices also went up, although in some regions this was due to increasing numbers of New Developments and prime property coming onto the market which command a higher price per square metre.
Determining factors accounting for an increase in sales transactions include a strong national economy, competitive financing and the strength of the Dollar and Pound against the Euro.
Other highlights from the Market reports Q3 and 4 are:
- Sales prices for Barcelona city averaged €3,392 per square metre by the end of 2015, up €204 over the average at the end of 2014, a 6.4% annual average growth rate. Data from Idealista shows that the districts of Eixample and the Zona Alta (Les Corts and Sarrià-Sant Gervasi) ended the year with the highest average sales prices.
- Official data from Idealista shows that prime property sales prices in Barcelona are their highest level since the start of 2013 at €4,612.65 per square metre, representing a compound growth rate of 26% over 2 years.
- Total transaction value of Barcelona property purchases by foreigners resident in Spain in the first three quarters of 2015 grew by 15.6% over the amount of trading for the same time period in 2014.
- Lucas Fox data shows that Spanish buyers now make up a significant proportion of the market. 2015 also saw a reduction in Russian buyers from the mid-level market. Buyers from North and South American and the Middle East are increasing incrementally over previous year sales demographics.
- Spanish buyers represented 43% of Lucas Fox completed sales during 2015, all of whom were investing in primary residences.
- 50% of Lucas Fox prime market buyers say that they were buying for investment purposes during 2015, a much higher proportion than during 2014.
- Sitges average sales prices grew by 8.65% during 2015, higher than the Barcelona average. Sales prices have increased for 8 consecutive quarters.
- The majority of prime market buyers chose Sitges to buy a holiday home site (66.7%), with a quarter (25%) planning to use properties as their primary residence.
- Unlike in other Lucas Fox regions, Sitges is an area still predominantly of interest to international buyers looking for a higher quality of life or a regular and accessible holiday home. In 2015, only 14% of Lucas Fox prime property buyers were Spanish.
- The city’s average sales price ended the year on €2,820 per square metre, an annual growth rate of 4.68%.
- Sales transactions increased by 14% during 2015 up to an average of 3276 sales per month. Transactions by foreigners during 2015 were up by 29.4% over the previous year.
- Amongst both prime and mid-market property in Madrid, two-thirds of purchases by Lucas Fox clients were made by buyers looking for a primary residence in the capital, often due to a relocation package.
- Madrid’s city centre rents rose the highest during 2015, ending the year on an average rental price of €15.30 per square metre, an increase of 11.68% over 2014 figures.
- The city’s average price ended the year on €2,820 per square metre, an annual growth rate of 4.68%.
- Sales transactions went up by 13.9% in 2015 over 2014 in Valencia, averaging 1345 sales a month.
- Total purchase value of property transactions in Valencia among foreign inestors for the first three quarters of 2015 totalled more than €170 million, a compound growth rate of 25.1% over 2 years.
- There has been a significant rise in US and Spanish clients looking to purchase property in the Costa Brava but Northern Europeans, particularly British, still dominate.
- During 2015, the majority of prime market buyers were looking at the Costa Brava as a holiday home, consistent with buyer motivations during 2014.
- All 3 key luxury districts across the Marbella region (Benahavís, Marbella and Estepona) increased average property prices by the end of 2015 over 2014.
- Estepona performed best in terms of increases, rising to €1,563 per square metre, up €125 per square metre in 2014 (an 8.69% annual growth rate).
- Total purchase value of property transactions made by foreign buyers in the province of Málaga for the first three quarters of 2015 surpassed €1.3 billion, a 14.76% increase over the same period in 2014.
- There is significant demand for high-end homes, with many selling out just a few months after release. According to the College of Architects in Málaga, 492 building licences were issued in Marbella during 2015, compared to 143 in 2014, and just 80 in 2013.
- Average prices show the island’s capital of Ibiza reached €3,594 per square metre by the end of 2015, up from €2,909 per square metre at the end of 2014, an annual growth rate of 23.6%. This doubled the growth rate of the previous year. Average prices in Ibiza are currently €2,031 per square metre above the national average.
- Transactions by foreigners on the Balearics went up by 49% in the first three quarters of 2015 compared to the same preiod in 2014.
- Prime property sales on Ibiza now represent 16% of all sales above €900,000 in Spain.
- 83% of Lucas Fox buyers are looking to purchase a holiday home on the island.
- Barcelona, Madrid, Marbella and Ibiza are seeing increasing numbers of New Development projects coming onto the market, a scenario which has not been prevalent for nearly 10 years.
- The average price of prime property across these regions is currently being driven up by sales of New Developments, which often sell for 20% more per square metre than re-sale homes in the same micro-area. Currently demand is outstripping supply, with waiting lists for this kind of product.
- In all areas, a significant proportion of these New Developments are being sold off-plan, almost always at asking price, showing that confidence in the market is returning.
- The age of the average investor is between 40 and 50 years old and they tend to be business owners, professionals, entrepreneurs or work in the finance, marketing, entertainment or sports industry. The main tranche of buyers is still from Northern Europe, with increasing interest from the Middle East and US.