Lucas Fox Spanish Real Estate Market Analysis Q1 & Q2 2018

Lucas Fox second home destinations register record sales and British buyers are undeterred by Brexit – Lucas Fox Q1 and Q2 2018 Market Reports.

The Spanish property market has continued to grow throughout 2018 so far with 217,539 properties exchanging hands in the first five months of the year, according to the National Institute of Statistics (INE), an increase of 13% over the same period in 2017. The number of new homes in the first five months of 2018 showed a similar growth, with 38,238 new homes being sold across Spain, representing 18% of the total sales.

Latest data from the Spanish Department of Development (Fomento) showed that the number of mid-market sales transactions (between €450,001 and €900,000) across Spain in the whole of 2017 increased by 29% compared to the number of mid-market sales in the whole of 2016. The number of prime sales transactions (over €900,000) in the whole of 2017 also increased compared to those in the whole of 2016, by 34%.

The average price of a property sold by Lucas Fox in the first six months of 2018 increased by 19%, averaging at €859,231, confirming that the Spanish prime property market is recovering well. Prime sales across all regions were up by 27% year-on-year. Due to the Catalan political situation the overall number of sales transactions completed by Lucas Fox in the first six months of 2018 decreased by 13% compared to the same period in 2017 but the total value of sales transactions showed an increase of 3%. Key second home destinations such as Marbella, the Costa Brava and Ibiza all saw significant growth compared to the same period last year. Only Barcelona and Sitges showed a dip in the volume of sales.

According to official data from the Spanish Property Registry (Registradores) almost 17,000 homes were sold to foreigners in the first quarter of 2018, representing just over 13% of total sales, compared to just under 15,000 in the same period in 2017.

Lucas Fox’s sales in the first six months of 2018 were dominated by foreigners who accounted for 66% of sales, the majority continuing to come from the United Kingdom, France, the United States and Scandinavia.

Just over a third of all Lucas Fox buyers purchased property as a primary residence in the first six months of 2018 with a similar share buying as a secondary residence. The remainder mainly bought for investment purposes.

Although foreign buyers accounted for a large proportion of Lucas Fox sales in the first six months of 2018, national clients continue to view properties on the Lucas Fox website, with 29% of interest coming from Spain. Amongst international website visitors the number of British visitors to the Lucas Fox website continues to dominate, with 21% of all visitors coming from the United Kingdom.

Leading property portal Idealista showed that property prices have continued to increase year-on-year, recording an annual increase of just over 7% at the end of the second quarter of 2018.

Spain continues to be on track to be one of the fastest growing economies among developed countries, Growth during 2018 is currently predicted at 2.4% by the IMF, slightly down on its earlier forecast due to the political instability. However, during 2019 the economy is expected to grow by 2.1%, which is above the original forecast on the premise the political uncertainty will have subsided by then.

Figures from Spain’s National institute of Statistics (INE) from Q1 2018 show that Spain’s unemployment fell by 458,900, a 10.79% fall over the same period in 2017. The Spanish government is committed to creating 500,000 new jobs in 2018.

Spain’s tourism sector recently posted record figures both for the number of foreign visitors to the country and for their spend. In the first quarter of the year more than 13.7 million overseas visitors came to Spain, an increase of 6% over the same period in 2017, spending a total of €14.7 billion, according to the National Institute of Statistics (INE).

Madrid

  • Both the number of sales and the total value of sales transactions by Lucas Fox Madrid in the first six months of 2018 increased, by 20% and 10% respectively, compared to the same period in 2017. However, the average property price in the first six months of 2018 decreased slightly, by 9%, compared to the same period in 2017, from €845,000 to €772,000.
  • National buyers accounted for two thirds of all Lucas Fox Madrid sales in the first six months of 2018. Of the international buyers the majority came from Latin America (17% of all buyers) and 8% came from the United Kingdom.
  • A third of all Lucas Fox Madrid buyers in the first six months of 2018 purchased property as a primary residence and a third bought as a secondary residence. A quarter of the buyers bought for investment purposes.
  • Spanish interest in Madrid properties represented just under 60% of all Lucas Fox website visitors in the first six months of 2018, slightly more than in Q1 2017 when 51% of website visitors came from Spain. Amongst international website visitors the majority of interest continues to come from the United States (9% of all visitors) and the United Kingdom (7%).
  • According to official figures the number of sales transactions in the Community of Madrid in the first five months of 2018 increased by 12% over the same period in 2017, averaging 6,343 sales per month. The number of sales transactions of new homes also rose by 12%, when comparing sales in the first five months of 2018 with those in the same period in 2017. Sales of new homes represented 22% of the total number of sales in the first five months of 2018, the same proportion as in the first five months of 2017. (INE)
  • The total value of sales transactions in the Community of Madrid in the first quarter of 2018 grew by 12% over the amount of trading for the same period in 2017, with the total value of sales transactions of resale properties increasing by 16%. However, the total value of sales transactions of new homes decreased by 12% when compared with the total value in the same period in 2017. (Spanish Department of Development)
  • The number of prime market sales transactions (over €900,000) in the Community of Madrid in the whole of 2017 increased by 54% compared to the prime sales in the whole of 2016. (Spanish Department of Development)
  • The number of foreign buyers in the Community of Madrid accounted for 6% of the total sales in the first quarter of 2018 compared to 5% in the first quarter of 2017. (Registradores)
  • Average property prices in Madrid city showed an annual increase of 23% at the end of the second quarter of 2018, ending the quarter on €3,759 per square metre. Average prices in the Centro district (including the neighbourhoods of Sol, Justicia and Cortes) rose by 16%, ending the quarter on an average of €4,987 per square metre. The sought-after districts of Chamartín, Chamberí and Salamanca ended the quarter on €5,007 per square metre (15% increase), €5,202 per square metre (15% increase) and €5,930 per square metre (19% increase) respectively. (Idealista)
  • Average rental prices in Madrid city showed an annual increase of 10% at the end of the second quarter of 2018, ending the quarter on €16.1 per square metre. Average rental prices in Centro (including the neighbourhoods of Sol, Justicia and Cortes), Chamartín, Chamberí and Salamanca ended the second quarter on €18.8 per square metre (5% increase), €16.6 per square metre (7% increase), €17.7 per square metre (8% increase) and €19.1 per square metre (10% increase) respectively. (Idealista)
  • The number of passengers arriving at Madrid-Barajas airport in the first six months of 2018 showed an annual increase of 8% over passenger arrivals in the same period in 2017. Just under 27.5 million passengers arrived at Madrid-Barajas airport in the first six months of 2018. (Aena)
  • International tourism in the Community Madrid in the first five months of 2018 increased by 5% over the same period in 2017. The Community of Madrid hosted almost 3 million international tourists in the first five months of 2018. (INE)

“Both the volume and value of Lucas Fox Madrid sales have increased in the first six months of this year compared to the same period in 2017 by 20% and 10% respectively, reflecting official statistics. This is mainly due to increased international awareness about the all-round benefits of the Spanish capital, its growing economy and Madrid’s still relatively attractive property prices when compared to the likes of London and Paris.

As with last year, we’ve seen a growing appetite from both national and international investors, with the majority from overseas coming from Latin America who are drawn to the relative stability of the country as well as the sentimental and linguistic attachment they have with Spain. We’re also seeing a consistent numbers of buyers purchasing for primary and secondary residences and prime sales are up by a third year-on-year.

The main challenge in the market currently is the availability of quality resale product in the most sought-after central areas of the capital, which is driving up prices significantly in these districts. At the same time New Developments are still rare to find, and demand, particularly in areas such as Salamanca, Justicia and Chamberí continues to outstrip supply. There are new and upcoming areas to keep an eye out for, such as Tetuán, which is strategically centrally located close to the financial district and well connected to the rest of the city.”

Rod Jamieson
Managing Director Lucas Fox

Barcelona

  • The political situation in Catalonia towards the end of 2017 had a noticeable effect on Lucas Fox’s sales in Barcelona in the first six months of 2018. Both the number of sales transactions and the total value of sales transactions in the first six months of 2018 decreased significantly compared to the same period in 2017. However, the average property price in the first six months of 2018 showed an increase of 20% compared to the first six months of 2017, averaging at €790,739. It is important to note that despite the decrease in the number of closed sales transactions the number of offers for new homes in the first six months of 2018 is significantly up on the number of offers for new homes in the same period in 2017, more than doubling.
  • National buyers accounted for 32% of all Lucas Fox Barcelona sales in the first six months of 2018, US buyers accounted for 18% of all sales and UK buyers 8%. The remaining buyers were mainly from other European countries. Of those buyers purchasing property in the mid-market range (between €450,000 and €900,000) national buyers accounted for 31% of all buyers, US buyers 13% and UK buyers 13%. Of those purchasing property in the prime market range (over €900,000) 37% came from Spain, 37% from the United States and 9% from the United Kingdom.
  • The majority of all Lucas Fox Barcelona buyers purchased property for investment purposes (42%). 32% bought as a primary residence and 21% as a secondary residence.
  • The number of rental transactions completed by Lucas Fox Barcelona in the first six months of 2018 increased by 17% compared to the same period in 2017, with the price averaging at €2,155 per month, down 20% on the average price in the same period in 2017.
  • Just over half of all Lucas Fox website visitors looking at Barcelona properties came from Spain in the first six months of 2018, up slightly from the same period in 2017. Website visitors from both the United Kingdom (9%) and the United States (8%) continue to regularly review Barcelona properties on the website.
  • According to official figures the number of sales transactions in Barcelona in the first five months of 2018 increased by only 2% over the same period in 2017, averaging 4,693 sales per month, largely due to last year’s political situation. The number of sales transactions of new homes showed a more significant increase (28%) when comparing sales in the first five months of 2018 with those in the same period in 2017. Sales of new homes represented 15% of the total number of sales in the first five months of 2018, compared to 12% in the first five months of 2017. (INE)
  • The total value of sales transactions in Barcelona in the first quarter of 2018 grew by just 1% over the amount of trading for the same period in 2017, with the total value of sales transactions of resale properties actually showing a very slight decrease. However, the total value of sales transactions of new homes increased by 11% when compared with the total value in the same period in 2017. (Spanish Department of Development)
  • The number of mid-market sales transactions (between €450,001 and €900,000) in Barcelona in the whole of 2017 increased by 28% compared to the number of mid-market sales in the whole of 2016. (Spanish Department of Development)
  • The number of prime market sales transactions (over €900,000) in Barcelona in the whole of 2017 increased by 36% compared to the number of prime sales in the whole of 2016. (Spanish Department of Development)
  • The number of foreign buyers in Barcelona accounted for 8% of the total sales in the first quarter of 2018 compared to 9% in the first quarter of 2017. (Registradores)
  • Average property prices in Barcelona city showed an annual increase of 3% at the end of the second quarter of 2018, ending the quarter on €4,400 per square metre. Average prices in the desirable district of Gràcia showed one of the biggest increases, ending the quarter on €4,521 per square metre, showing an increase of 17%. Average prices also rose in the sought-after districts of Eixample and Sarrià-Sant Gervasi where prices ended the quarter €5,120 and €5,340 per square metre respectively (showing increases of 1% and 4% respectively). However, of the ten districts of Barcelona, three districts showed a decrease in average property prices – the Old Town (2% decrease), Les Corts (0.5% decrease) and Sant Martí (1% decrease). (Idealista)
  • Average rental prices in Barcelona city showed an annual decrease of 3% at the end of the second quarter of 2018, ending the quarter on €17.2 per square metre. Average prices in several prime areas have come down – in Eixample by 5% to €17.8 per square metre, in Gràcia by 7% to €16.2 per square metre and in Barcelona Old Town by 5% to €19.1 per square metre. (Idealista)
  • The number of passengers arriving at Barcelona-El Prat airport in the first six months of 2018 showed an annual increase of 6% over passenger arrivals in the same period in 2017. Just over 23 million passengers arrived at Barcelona-El Prat airport in the first six months of 2018. (Aena)
  • International tourism in Catalonia in the first five months of 2018 decreased slightly over the same period in 2017, by 2%. Catalonia hosted just over 6.5 million international tourists in the first five months of 2018. (INE)

“The last six months have been a fairly challenging time for Lucas Fox. The knock-on effect of the independence issues meant we saw a temporary dip in demand for homes from international buyers. However, transactions involving local buyers have remained constant throughout the period. The situation has now stabilised and we are now registering as many enquiries for Barcelona property as we were this time last year.

Prices in the city have also readjusted in the last six months or so and buyers are seeing this as an opportunity in which to invest, given the positive forecasts of continued price rises.

New homes continue to be in high demand particularly in central districts and along the beachfront – around a third of our Barcelona completed sales in the first half of the year were for these popular ‘lock and leave’ products, which are sought-after by investors. In the first six months of 2018 we have already registered more than double the number of offers for new homes than we registered in the same period last year.”

Rod Jamieson
Managing Director Lucas Fox

Valencia

  • Both the number of sales and the total value of sales transactions by Lucas Fox Valencia in the first six months of 2018 increased, by 10% and 24% respectively, compared to the same period in 2017. In central districts of Valencia (not including the beachfront area of Patacona) the average property price in the first six months of 2018 also increased, by 14% to €531,750, compared to the same period in 2017.
  • National buyers accounted for 59% of all Lucas Fox Valencia sales in the first six months of 2018. 9% of buyers came from the United States and the remaining buyers came from European countries.
  • Just over half of all Lucas Fox Valencia buyers in the first six months of 2018 purchased property as a main home. 32% purchased property as a secondary residence and the remainder purchased for either investment or relocation purposes.
  • The number of rental transactions completed by Lucas Fox Valencia (not including the area of Patacona) in the first six months of 2018 increased by 45% compared to the same period in 2017, with the price averaging at €1,838 per month.
  • 59% of all Lucas Fox website visitors looking at Valencia properties came from Spain in the first six months of 2018, almost exactly the same proportion as in the same period in 2017. Website visitors from both the United States and the United Kingdom accounted for 9% and 8% respectively of all Lucas Fox website visitors.
  • According to official figures the number of sales transactions in Valencia in the first five months of 2018 increased by 19% over the same period in 2017, averaging 2,584 sales per month. However, the number of sales transactions of new homes showed a decrease of 16% when comparing sales in the first five months of 2018 with those in the same period in 2017. Sales of new home represented 10% of the total number of sales in the first five months of 2018, compared to 14% in the first five months of 2017. (INE)
  • The total value of sales transactions in Valencia in the first quarter of 2018 grew by 17% over the amount of trading for the same period in 2017, with the total value of sales transactions of resale properties increasing by 22% However, the total value of sales transactions of new homes decreased by 30% when compared with the total value in the same period in 2017. (Spanish Department of Development)
  • The number of foreign buyers in Valencia accounted for 10% of the total sales in the first quarter of 2018 compared to 9% in the first quarter of 2017. (Registradores)
  • Average property prices in Valencia city showed an annual increase of 15% at the end of the second quarter of 2018, ending the quarter on €1,831 per square metre. Average prices in the Old Town, Eixample and El Pla del Real ended the quarter on €2,708 per square metre (9% increase), €2,995 per square metre (16% increase) and €2,520 per square metre (13% increase) respectively. (Idealista)
  • Average rental prices in Valencia city showed an annual increase of 16% at the end of the second quarter of 2018, ending the quarter on €8.9 per square metre. (Idealista)
  • The number of passengers arriving at Valencia airport in the first six months of 2018 showed an annual increase of 20% over passenger arrivals in the same period in 2017. Just over 3.5 million passengers arrived at Valencia airport in the first six months of 2018. (Aena)
  • International tourism in Valencia continued to increase in the first five months of 2018, growing by 5% over international visitor numbers in the same period in 2017. The Valencian Community hosted 3.2 million international tourists in the first five months of 2018. (INE)

“The Valencia property market has continued to grow steadily in the first half of 2018 as has been the case since the market bottomed out midway through 2014 and all indications point to continued double digit growth for Lucas Fox Valencia sales transactions by the end of 2018.

This is down to 3 key reasons: the growth of the economy and with it falling unemployment as well as the increase in demand for homes from international buyers, many of whom are looking for a competitive alternative to Madrid and Barcelona where prices are out of reach for some buyers. Others have been deterred by the political situation in Catalonia.

With regards to property prices, the most expensive districts, such as Pla del Remei and San Francesc, have seen moderate increases whereas other ‘barrios’ have seen significant rises so far this year and are playing ‘catch-up’. An exceptional case is the district of Patacona where prices have risen 20% in the last year and a half due to demand outweighing supply.

With regards to new builds, the current statistics don’t reflect the true situation as many deals won’t complete until works are finished. Soon we will begin to see major growth in this sector, above all in the periphery areas of the city.

The Valencia rentals market is going well. Lucas Fox apartments are renting for up to €1,850 a month in prime city areas and for over €3,000 in upmarket residential districts. As with property sales, the most expensive areas have seen modest price rises and in some cases have seen prices drop whilst rentals in the outskirts have increased by 5%.”

Juan Luis Herrero
Partner Lucas Fox Valencia

Maresme

  • The number of sales by Lucas Fox Maresme in the first six months of 2018 increased by 80% compared to the same period in 2017. However, the total value of sales transactions decreased substantially, by 27%. The average property price in the first six months of 2018 was €538,000, showing a decrease of 60% over the average price in the same period in 2017.
  • National buyers accounted for a third of all Lucas Fox Maresme sales in the first six months of 2018. 11% of buyers came from the United States and the remaining buyers came from European countries.
  • Two thirds of Lucas Fox Maresme buyers in the first six months of 2018 purchased property as a primary residence with the reminder buying either as a secondary residence or for relocation purposes.
  • In the first six months of 2018 the majority of interest in Maresme properties on the Lucas Fox website was national, with 56% of visitors coming from Spain, the same proportion as in the first six months of 2017. Amongst international website visitors interest from the United Kingdom was up on the same period in 2017 with UK buyers accounting for 10% of all visitors. 5% of all visitors in the first six months of 2018 came from the United States, a similar proportion to the same period in 2017.
  • According to official figures the number of sales transactions in the Maresme region in the first quarter of 2018 increased by 15% over the same period in 2017. (Generalitat de Catalunya)
  • Average property prices in the Maresme region showed an annual increase of 10% at the end of the first quarter of 2018, ending the quarter on €1,906 per square metre. (Generalitat de Catalunya)

“Sales volume in the Maresme region in the first six months of 2018 has increased by 80% compared to the first six months of 2017 though the average transaction value has dropped substantially from the same period in 2017, with the average Lucas Fox sale price in the region falling to around €550,000 for resale properties and €440,000 for New Developments.

Two thirds of sales have been to foreign buyers so far in 2018 and a third to national clients. The market continues to see substantial movement at the lower to mid end of the market but very few transactions over the €900,000 level.”

Tom Maidment
Partner Lucas Fox Maresme

Sitges

  • Both the number of sales transactions and the total value of sales transactions by Lucas Fox Sitges in the first six months of 2018 decreased, by 8% and 20% respectively, compared to the same period in 2017. The average property price in the first six months of 2018 also went down, to €1.1 million, showing a decrease of 13% compared to the average price in the same period in 2017.
  • Foreign buyers accounted for 82% of al Lucas Fox Sitges sales in the first six months of 2018, with the majority coming from Europe. 27% of all buyers came from the United Kingdom.
  • Over half of all Lucas Fox Sitges buyers in the first six months of 2018 purchased property as a secondary residence, with 45% buying as a primary residence.
  • Although foreign website visitors accounted for the majority of Lucas Fox Sitges sales in the first six months of 2018, national website visitors continue to view Sitges properties on the Lucas Fox website, with 41% of interest coming from Spain. Amongst international website visitors the number of British visitors to the Lucas Fox website looking for property in Sitges continues to dominate, with 18% of all visitors coming from the United Kingdom.
  • Average property prices in Sitges showed a very slight decrease at the end of the second quarter of 2018, with average prices down €6 from the price at the end of the second quarter of 2017 to €3,856 per square metre. Average prices in the neighbouring areas of Castelldefels and Gavà, however, showed increases compared to the average price at the end of the second quarter of 2017, ending the second quarter of 2018 on €3,421 (12% increase) and €2,917 per square metre (7% increase) respectively. (Idealista)
  • Average rental prices in Sitges showed an annual increase of 2% at the end of the second quarter of 2018, ending the quarter on €14.9 per square metre. Average rental prices in neighbouring Gavà also increased, by 29%, ending the second quarter on €16.5 per square metre. However, average rental prices in Castelldefels showed a slight decrease, of 5%, ending the second quarter on €14 per square metre. (Idealista)

“The first six months of this year has seen a steady flow of business in Sitges. Properties sold have been a mixture of town centre apartments, villas in the hills with sea views, properties in need of refurbishment and plots as well as off-plan apartments. Transactions have varied from €300,000 to over €5 million.

The buyers are a mixture of nationalities and more or less a 50/50 split between buyers looking for a second home or looking to relocate to the area. Our team has grown to include 6 agents and 2 administrative staff, to accommodate the demand and to improve our portfolio of properties. Our office is now able to attend clients in English, Spanish, Catalan, Portuguese, Dutch and German.”

Rachel Haslam
Director Lucas Fox Sitges

Costa Brava & Girona

  • Lucas Fox Costa Brava had an excellent first half-year with both the number of sales and total value of sales in the first six months of 2018 up significantly compared to the same period in 2017. The average property price in the first six months of 2018 also rose, to just over €1.3 million, showing an increase of 82% over the average price in the same period in 2017.
  • National buyers accounted for 19% of all Lucas Fox Costa Brava sales in the first six months of 2018, French buyers 31%, UK buyers 25% and US buyers 6%. The remaining buyers largely came from other European countries.
  • The majority of Lucas Fox Costa Brava buyers in the first six months of 2018 purchased property as a secondary residence (56%) with 19% buying as a primary residence and 13% for investment purposes.
  • 37% of all Lucas Fox website visitors looking at Costa Brava properties came from Spain in the first six months of 2018, similar to the proportion in the same period in 2017 (39%). Website visitors from both the United Kingdom, France and the United States accounted for 18%, 9% and 6% respectively of all Lucas Fox website visitors.
  • According to official figures the number of sales transactions in Girona Province in the first five months of 2018 increased by 7% over the same period in 2017, averaging 940 sales per month. The number of sales transactions of new homes also rose, by 33%, when comparing sales in the first five months of 2018 with those in the same period in 2017. Sales of new homes represented 16% of the total number of sales in the first five months of 2018, slightly down on the proportion (15%) in the first five months of 2017. (INE)
  • The total value of sales transactions in Girona Province in the first quarter of 2018 grew by 5% over the amount of trading for the same period in 2017, with the total value of sales transactions of resale properties also increasing slightly, by 1%. The total value of sales transactions of new homes showed a more significant increase, with the total value of sales in the first quarter of 2018 growing by 48% compared to the same period in 2017. (Spanish Department of Development)
  • The number of prime market sales transactions (over €900,000) in Girona Province in the whole of 2017 decreased by 13% compared to the prime sales in the whole of 2016. (Spanish Department of Development)
  • The number of foreign buyers in Girona Province (which covers the Costa Brava, an area traditionally popular with foreign buyers, especially those coming from the United Kingdom) accounted for 27% of the total sales in the first quarter of 2018, down from 33% in the first quarter of 2017. (Registradores)
  • Average property prices in Girona Province showed an annual increase of 2% at the end of the first quarter of 2018. In the sought-after area of Palamós average prices increased by 4% and average prices in Girona city itself increased by 12%. (Idealista)

“This has been a record-breaking year for the Lucas Fox Costa Brava office. Sales volume in the first half of 2018 has far exceeded year on year results from 2017 and we are already well over 80% towards our forecasted figures for the entire year. The greatest volume of sales has been resale transactions in the coastal areas of Begur and Palafrugell whilst 50% of inland sales have been in the sought-after Empordà region.

Northern European buyers have been the most active with French and British buyers accounting for over 50% of all Lucas Fox sales transactions in the region. The off-plan sale of almost half of the units in the Cala S’Alguer Apartaments New Development in Palamós – for which Lucas Fox is the sole agent – has also demonstrated that there is a strong appetite for turnkey homes in prime areas of the Costa Brava. 85% of these sales have been to national clients, illustrating the strong demand for new build product from local buyers and highlighting the continued recovery of the national market.”

Tom Maidment
Partner Lucas Fox Costa Brava & Girona

Marbella-Costa del Sol

  • Lucas Fox Marbella had an excellent first half-year with the number of sales in the first six months of 2018 increasing by 50% and the total value of sales transactions also increasing substantially compared to the same period in 2017. The average property price in the first six months of 2018 also rose significantly, to just over €1.2 million, showing an increase of 125% over the average price in the same period in 2017.
  • Foreign buyers accounted for 83% of all Lucas Fox Marbella sales in the first six months of 2018, with a third coming from the United Kingdom and the remaining buyers coming from other European countries.
  • All Lucas Fox Marbella buyers in the first six months of 2018 purchased property as a secondary residence.
  • Although foreign buyers accounted for the majority of all Lucas Fox Marbella sales in the first six months of 2018, national interest in Marbella properties is still high with 39% of buyers looking for properties in Marbella coming from Spain. Amongst international buyers the majority of interest in properties in Marbella continues to come from the United Kingdom (12% of all visitors) followed by Sweden (7%).
  • According to official figures the number of sales transactions in Málaga Province in the first five months of 2018 increased by 8% over the same period in 2017, averaging 2,786 sales per month. The number of sales transactions of new homes decreased slightly, by 3%, when comparing sales in the first five months of 2018 with those in the same period in 2017. Sales of new homes represented 17% of the total number of sales in the first five months of 2018, compared to 19% in the first five months of 2017. (INE)
  • The total value of sales transactions in Málaga Province in the first quarter of 2018 grew by 21% over the amount of trading for the same period in 2017, with the total value of sales transactions of resale properties increasing by 18% and the total value of sales transactions of new homes increasing by 61%. (Spanish Department of Development)
  • The number of prime market sales transactions (over €900,000) in Málaga Province in the whole of 2017 increased by 31% compared to the prime sales in the whole of 2016. (Spanish Department of Development)
  • The number of foreign buyers in the Málaga Province accounted for 31% of the total sales in the first quarter of 2018 compared to 28% in the first quarter of 2017. (Registradores)
  • Average property prices in Málaga Province showed an annual increase of 12% at the end of the second quarter of 2018, ending the quarter on €2,034 per square metre. Average prices in Benahavís, Estepona and Marbella also increased, ending the quarter on €2,325 per square metre (13% increase), €2,206 per square metre (12% increase) and €2,766 per square metre (8% increase) respectively. (Idealista)
  • Average rental prices in Málaga Province showed an annual increase of 11% at the end of the second quarter of 2018, ending the quarter on €10.2 per square metre. (Idealista)
  • The number of passengers arriving at Málaga-Costa del Sol airport in the first six months of 2018 showed an annual increase of 3% over passenger arrivals in the same period in 2017. Just over 8.6 million passengers arrived at Málaga-Costa del Sol airport in the first six months of 2018. (Aena)

“British clients are starting to buy again and if Brexit ends up being a ‘soft Brexit’, that is likely to have a positive impact on the property market on the Costa del Sol. Indeed, the Brits represented 33% of all sales during the first half of the year compared to 10% in the whole of 2017. Demand from Scandinavians is significantly down on 2017 but we’ve seen greater interest from national buyers and also Swiss investors.

There has also been a big increase in the numbers of off-plan projects available on the Costa del Sol and most seem to be selling well. Prices seem to be competitive compared with resale properties particularly when factoring in new build quality and design. Increased competition is leading to some more aggressive sales techniques and in some cases homes are selling well before a licence has been granted, so it is now increasingly important to use the services of an unbiased and independent broker to identify the best projects and also protect buyers from unscrupulous developers.”

Ira Brankovic
Lucas Fox Marbella

Ibiza

  • Lucas Fox Ibiza had an extremely successful first half-year with both the number of sales and the total value of sales in the first six months of 2018 up significantly compared to the same period in 2017. The average property price in the first six months of 2018 was €1.2 million, showing an increase of 10% over the average price in the same period in 2017.
  • Foreign buyers accounted for all Lucas Fox Ibiza sales in the first six months of 2018, with the majority coming from European countries and 13% coming from the United Kingdom.
  • All Lucas Fox Ibiza buyers in the first six months of 2018 purchased property as a secondary residence.
  • Although foreign buyers accounted for all of Lucas Fox Ibiza sales in the first six months of 2018, national interest is still high with 41% of buyers looking for property in Ibiza coming from Spain. Amongst international buyers interest from the United Kingdom was high (17% of all visitors), followed by the United States (7%), the Netherlands (6%), France (5%) and Germany (5%).
  • According to official figures the number of sales transactions in the Balearic Islands in the first five months of 2018 decreased slightly, by 1%, over the same period in 2018, averaging 1,347 sales per month. However, the number of sales transactions of new homes rose by 5% when comparing sales in the first five months of 2018 with those in the same period in 2017. Sales of new homes represented 18% of the total number of sales in the first five months of 2018, compared to 17% in the first five months of 2017. (INE)
  • The total value of sales transactions in the Balearic Islands in the first quarter of 2018 decreased slightly, by 3%, over the amount of trading for the same period in 2017. However, the total value of sales transactions of new homes increased by 41% when compared with the total value in the same period in 2017. (Spanish Department of Development)
  • The number of prime market sales transactions (over €900,000) in the Balearic Islands in the whole of 2017 increased by 23% compared to the prime sales in the whole of 2016. (Spanish Department of Development)
  • The number of foreign buyers in the Balearic Islands accounted for 32% of the total sales in the first quarter of 2018, the same proportion as in the first quarter of 2017. (Registradores)
  • Average property prices across the Balearic Islands showed an annual increase of 2% at the end of the second quarter of 2018, with prices ending the quarter on €2,653 per square metre. Average prices in Ibiza Old Town, Sant Josep de sa Talaia and Santa Eulària des Riu ended the second quarter on €5,299 per square metre (7% increase), €3,523 (15% increase) and €3,588 per square metre (20% increase) respectively. (Idealista)
  • The number of passengers arriving at Ibiza airport in the first six months of 2018 showed an annual increase of 8% over passenger arrivals in the same period in 2017. Just over 3.1 million passengers arrived at Ibiza airport in the first six months of 2018. (Aena)

“Ibiza continues to be a highly sought-after destination in the Mediterranean, with luxury property in short supply compared to the level of demand. In the first six months of 2018 Lucas Fox Ibiza has enjoyed one of its most successful periods in recent years, thanks to the high volume of prime sales (50%). So far this year all of Lucas Fox Ibiza sales were to international buyers and all were purchasing second residences. The number of UK buyers is up from last year despite the prospect of Brexit – representing 13% of all sales. The figures suggest that investors with more to spend are shifting money from the UK and acquiring European assets in anticipation of events to come when Brexit takes full effect.

Several New Development projects are coming onto the market in 2018, in both the mid and upper end of the market. This will satisfy some of the demand for homes in luxury gated communities with concierge services, and offer buyers the main benefit of being able to purchase a property without dealing with planning illegality issues.

The one-year moratorium on the issue of rental licences is due to expire on 1 August 2018. From this date property owners should be able to apply for a licence, as long as they are not situated in a zone that has been designated as already saturated with tourism.”

Rod Jamieson
Managing Director Lucas Fox

Note the following figures are provisional:

  • INE (Sales Transactions) (from April 2017)
  • INE (International Tourism) (from June 2017)
  • Spanish Department of Development (from Q1 2018)

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