Lucas Fox Spanish Real Estate Market Analysis Q1 – Q3 2017

Positive news from Lucas Fox with latest data continuing to show significant increases in both the number and value of sales transactions.

Latest data from Lucas Fox shows a positive property landscape across all its regions in the first three quarters of 2017. The number of sales transactions in the first nine months (Q1-Q3) of 2017 showed an annual growth rate of just over 50% compared to the same period last year. The value of sales transactions during this period registered an even more significant increase. New homes continue to be the product most in demand, whilst there are increasing numbers of buyers choosing to invest in Madrid, following the trend from the first half of the year. The number of national buyers also continues to increase, particularly in Madrid and Valencia.

KEY FINDINGS – SPAIN

  • Lucas Fox registered a significant increase in both the value and volume of sales transactions in the first three quarters of 2017 across all its regions, with annual growth rates of 51% and 70% respectively
  • The average Lucas Fox property price during the first three quarters of the year was €802,000, an increase of 13% over the average price in the same period in 2016
  • Lucas Fox buyers looking for a secondary residence (31%) or investment property (30%) continued to dominate the market during the first nine months of 2017, with 26% seeking a primary residence
  • International buyers accounted for 65% of Lucas Fox buyers in the first three quarters of 2017, with 11% coming from the United Kingdom and Ireland and 8% coming from the United States
  • According to the National Institute of Statistics, the average number of sales transactions per month across Spain as a whole during the first eight months of 2017 (for which data is currently available) was 39,474, showing an annual growth rate of 14% compared to the average number of sales transactions during the same period in 2016
  • Average sales prices across Spain showed an annual growth rate of 3.7% at the end of the third quarter of 2017, according to property portal Idealista
  • According to the National Institute of Statistics, the number of tourists visiting Spain in the first nine months of 2017 reached 66.1 million visitors, showing an increase of 10% compared to the same period in 2016

Lucas Fox

“Our findings from the third quarter of 2017 continue to show encouraging trends across all our regions. Established prime international destinations, including the cities of Madrid, Valencia and Barcelona and coastal locations such as Marbella and the Costa Brava are all performing extremely well. Better employment opportunities, stronger consumer confidence and rising disposable incomes have all helped facilitate the recent property market growth. Supply for new homes remains tight, however, as demand continues to rise but we expect more of these turnkey homes to come onto the market in the last quarter of 2017 and throughout 2018 which could see prices rise further in Barcelona and Madrid, although not as acutely as they have done in the last twelve months as the market readjusts slightly due to the recent political situation.”

Rod Jamieson, Managing Director & Partner, Lucas Fox Barcelona & Madrid

Regional highlights for the first three quarters of 2017 include:

Barcelona

  • The volume of Lucas Fox Barcelona sales increased by 38% and the value of sales by 41% in the first nine months of 2017 compared to the same period in 2016
  • The largest proportion of Lucas Fox buyers (43%) purchased for investment reasons in the mid-level market
  • In the prime residential market (above €900,000), 38% of Lucas Fox buyers bought as a secondary residence and 24% bought as a primary residence
  • National buyers represented 34% of Lucas Fox mid-market buyers and 34% of prime market buyers
  • Lucas Fox Barcelona rental transactions in the first three quarters of 2017 registered an 82% annual growth rate compared to the same period in 2016, with the average home to rent priced at €2,649
  • According to the National Institute of Statistics, the average number of sales transactions per month in the Province of Barcelona in the first eight months of 2017 (for which data is currently available) was 4,608, showing an annual growth rate of 17% compared to the average number of sales transactions during the same period in 2016
  • According to the Spanish Department of Development, the total value of sales of new homes in the Province of Barcelona during the first two quarters of 2017 increased by 53% compared to the same period in 2016
  • According to property portal Idealista, property prices for the city of Barcelona averaged €4,335 per square metre at the end of September 2017, up €668 over the average at the end of September 2016, showing an annual growth rate of 18%
  • Average rental prices in the city ended the third quarter on €18.3 per square metre, according to Idealista, showing an annual increase of 5%

Lucas Fox Barcelona

Barcelona North and South Coast (Maresme and Sitges)

  • The value of Lucas Fox Maresme sales increased by 104% in the first three quarters of 2017 compared to the same period in 2016
  • Over half (60%) of Lucas Fox Maresme buyers purchased a primary residence during the first three quarters of 2017
  • The number of sales by Lucas Fox Sitges increased by 240% in the first nine months of 2017 compared to the same period in 2016
  • During the first nine months of 2017, just under a fifth of Lucas Fox Sitges buyers (18%) were Spanish and almost a quarter (24%) came from the UK
  • Just under half (47%) of Lucas Fox Sitges buyers purchased a home as a secondary residence during the first three quarters of 2017

Madrid

  • Both the volume and value of Lucas Fox Madrid sales increased in the first three quarters of 2017, up by 70% and 343% respectively compared to the same period in 2016
  • Over half (53%) of Lucas Fox Madrid sales were for investment properties during the first nine months of 2017
  • Over half (53%) of all Lucas Fox Madrid sales were to national buyers
  • Just under a quarter (24%) of Lucas Fox Madrid buyers were from Latin America
  • According to the National Institute of Statistics, the average number of sales transactions per month in the Community of Madrid averaged 5,921 during the first eight months of 2017 (for which data is currently available), up from an average of 5,055 in the first nine months of 2016, showing an annual growth rate of 17%
  • According to the Spanish Department of Development, the total value of sales of new homes in the Community of Madrid during the first two quarters of 2017 increased by 35% compared to the same period in 2016
  • Property prices in the centre of the city of Madrid averaged €4,456 per square metre at the end of September 2017, according to leading property portal Idealista, showing an annual growth rate of 20%
  • According to Idealista, average rental prices in the city centre ended the third quarter on €18.4 per square metre, €3.1 above the average price across the city as a whole and showing an annual increase of 9%

Lucas Fox Madrid

Valencia

  • The volume of homes sold by Lucas Fox Valencia in the first nine months of 2017 increased by 120% compared to the same period in 2016
  • Just under half (48%) of Lucas Fox Valencia buyers bought for a primary residence or for relocation reasons, with the remainder split more or less equally between investment and second home
  • 61% of Lucas Fox Valencia buyers were Spanish
  • Lucas Fox Valencia rental transactions in the first three quarters of 2017 registered a 38% annual growth rate compared to the same period in 2016, with the average home to rent priced at €2,089

Marbella, Costa Brava and Ibiza

  • The volume of Lucas Fox Marbella sales in the first nine months of 2017 saw an annual increase of 250% compared to the same period in 2016
  • Sales to Scandinavian buyers in the first three quarters of 2017 accounted for 86% of all Lucas Fox Marbella sales
  • Over two thirds (71%) of all Lucas Fox Costa Brava sales were to international buyers during the first nine months of 2017
  • 43% of Lucas Fox Costa Brava buyers purchased a secondary residence
  • All Lucas Fox Ibiza buyers purchased for a secondary residence during the first three quarters of 2017

View properties for sale in Barcelona with Lucas Fox

View properties for sale in Maresme with Lucas Fox

View properties for sale in Sitges with Lucas Fox

View properties for sale in Madrid with Lucas Fox

View properties for sale in Valencia with Lucas Fox

View properties for sale in the Costa Brava with Lucas Fox

View properties for sale in Marbella with Lucas Fox

View properties for sale in Ibiza with Lucas Fox

Sell or rent your property quickly, and at the right price

We have a growing database of national and international clients actively looking to buy or rent property in Spain, Andorra and Portugal. Our in-house analytics team are experienced in pinpointing the right buyers or tenants for your property to ensure we can sell or rent your home faster.

Free property valuation

Get the Lucas Fox property newsletter for exclusive news, insight and analysis

Join mailing list Join mailing list