Published 15/11/2017 by Carrie Frais

New Developments in Spain in high demand

The growing demand for new homes in Spain’s key cities and desirable coastal regions is currently outweighing supply.

The Spanish property market continues to provide excellent investment opportunities, driven by a combination of attractive prices, competitive mortgage packages, low interest rates and a growing economy, as well as the numerous lifestyle benefits on offer.

Interest in new homes and newly renovated properties remains high, especially in key cities such as Barcelona and Madrid, where demand is currently outweighing supply.

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. The total value of sales of new homes across Spain as a whole increased by 15%.

Lucas Fox data for the first three quarters of 2017 shows a similar trend with the number of sales of new homes by Lucas Fox Barcelona during this period showing an increase of 30% compared to the same period in 2016 and currently make up 26% of all Barcelona sales. National buyers accounted for 17% of Lucas Fox’s New Development sales in Barcelona in the first three quarters of 2017, with the same percentage coming from the United Kingdom.

The latest data from Lucas Fox Madrid also confirms this high demand with sales of new homes accounting for almost half of all Lucas Fox’s sales in Madrid.

Sales prices for new homes have also continued to rise, with prices during the second quarter of 2017 averaging at €4,488 per square metre in Barcelona, up from €3,825 per square metre during the first quarter of 2017, according to the Generalitat de Catalunya. The price of new homes in Barcelona registered an average of €4,025 per square metre over the period of July 2016 to June 2017. The prices commanded by new properties are generally significantly higher than those of resale properties. For example, in the desirable district of Eixample in Barcelona the average price of a new home over the period of July 2016 to June 2017 (€5,250 per square metre) was 36% more than the average price of a resale home (€3,847 per square metre).

“We are seeing that the new build sector has several markets. New homes in different neighbourhoods within the same district in Barcelona and Madrid can carry different price brackets and consequently, we are having to carry out different analysis about location, supply, demand and price for each sub district. Compared to most Northern European cities, new builds and newly renovated homes in Spanish cities continue to offer good value for money however. Average prices in Paris and London can reach over €8,000 and €10,000 per square metre respectively compared to around €5,000 in Madrid and Barcelona.”

Rod Jamieson, Managing Director, Lucas Fox Madrid & Barcelona

Here is a selection of investment opportunities currently available with Lucas Fox in Barcelona, Madrid, the Costa Brava, Marbella and Ibiza:

Barcelona

Diagonal Port

Prices from €367,800
Ref: Diagonal-Port
Potential rental yield 5.5%

Modern apartments in Diagonal Mar with terraces, a rooftop infinity pool and sensational sea views.

Gran Via 604 Apartments

Prices from €500,000
Ref: GranVia604
Potential rental yield 5.2%

Exclusive apartments in a landmark building with views over Passeig de Gràcia.

Ataülf 7 Apartments

Prices from €500,000
Ref: Ataulf-7
Potential rental yield 4.5%

Stylish apartments in Barcelona’s charming Old Town combining period features with modern finishes.

Diagonal Sky Towers

Prices from €465,000
Ref: Diagonal-Sky-Towers
Potential rental yield 5.8%

Contemporary apartments in Diagonal Mar with terraces, sea and city views and a communal pool.

Girona Apartments

Prices from €1,475,000
Ref: Girona-Apartments
Potential rental yield 2.3%

High-end homes in Eixample Right with 2 communal pools, a rooftop garden and a gym.

Madrid

Madroños Apartments

Prices from €1,424,000
Ref: Madronos-27

Ultra modern apartments and penthouses with a communal pool, gym and garden located in Conde de Orgaz.

Fernando VI Properties

Prices from €1,160,000
Ref: Fernando-VI-19

Spectacular apartments in a classic building in the Justicia neighbourhood with excellent communal facilities.

Costa Brava

Cala S’Alguer Apartaments

Prices from €320,000
Ref: Cala-S-Alguer

Stunning seafront apartments, garden flats and penthouses in breathtakingly beautiful natural surroundings on the Costa Brava.

Marbella

Estepona Sea View Terrace Apartments

Prices from €340,000
Ref: Estepona-Sea-View-Terraces

Modern townhouses in a gated seafront development with beautiful gardens and rooftop terraces.

Ibiza

Villas Cala Llenya

Prices from €2,050,000
Ref: villas-cala-llenya

High-end villas next to the beach in Cala Llenya with private gardens, pools and stunning sea views.

View more New Developments for sale on the Lucas Fox website

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