Lucas Fox Spanish Real Estate Market Analysis Q1-Q3 2018

Average price of a property sold up, prime sales in coastal areas increasing and city rentals booming – some of the highlights of the Q1-Q3 Lucas Fox Market Reports.

Real Estate Market Analysis

The Spanish property market has continued to grow throughout 2018 so far with 352,768 properties exchanging hands in the first nine months of the year, according to the National Institute of Statistics (INE), an increase of 11% over the same period in 2017. The number of new homes in the first eight months of 2018 showed a similar growth, with 62,318 new homes being sold across Spain, representing 18% of the total sales, a similar proportion to the same period in 2017.

Latest data from the Spanish Department of Development (Fomento) shows that the number of mid-market sales transactions (between €450,001 and €900,000) across Spain in the first quarter of 2018 by 11% compared to the number of mid-market sales in the first quarter of 2017. The number of prime sales transactions (over €900,000) in the first quarter of 2018 also increased compared to those in the first quarter of 2017, by 10%.

The average price of a property sold by Lucas Fox in the first nine months of 2018 increased by 9%, averaging at €847,189, proving that the Spanish prime property market is continuing to recover. Prime sales across all regions were up by 31% year-on-year.

Due to the Catalan political situation the overall number of sales transactions completed by Lucas Fox in the first nine months of 2018 decreased by 4%, although the total value of sales transactions showed an increase of 5%. However, the number of sales completed in the third quarter of 2018 was more than the quarterly average in the first half of the year, suggesting that confidence is returning to the market. Key second home destinations such as Marbella, the Costa Brava and Ibiza continued to see significant growth in the volume of sales.

According to official data from the Spanish Property Registry (Registradores) over 17,000 homes were sold to foreigners in the second quarter of 2018, representing just under 13% of total sales, compared to just over 15,500 in the same period in 2017.

Lucas Fox’s sales in the first nine months of 2018 continue to be dominated by foreigners who accounted for 68% of sales, the majority continuing to come from the United Kingdom, France, the United States and Scandinavia

Following on from previous trends, just over a third of all Lucas Fox buyers purchased property as a primary residence in the first nine months of 2018 with a similar share buying as a secondary residence. The remainder mainly bought for investment purposes.

Leading property portal Idealista showed that resale property prices have continued to increase year-on-year, recording an annual increase of almost 8% at the end of the third 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 2.6% by the IMF, significantly higher than Germany, France and the UK. In 2019, it is expected to grow at 2.2%. The predicted growth is expected to fuel job creation and help bring unemployment down from its current rate of 15.3% to below 12% by the end of 2020.

There was a drop in tourist figures for Spain in July this year, down to 9.98 million from the record-breaking 10.5 million in July 2018. This is partly due to a recovery of alternative sun-and-sand destinations such as Tunisia and Turkey, whose tourism sector had suffered in recent years from terrorist attacks and regional instability. Also Northern Europe enjoyed exceptionally warm weather this summer.

Madrid

  • The number of sales and the total value of sales transactions by Lucas Fox Madrid in the first nine months of 2018 decreased slightly compared to the same period in 2017, with the average property price also decreasing.
  • National buyers accounted for 60% of all Lucas Fox Madrid sales in the first nine months of 2018. Of the international buyers the majority continue to come from Latin America (a third of all international buyers). 17% of all international buyers in the first nine months of 2018 came from the United Kingdom.
  • Just over a third of all Lucas Fox Madrid buyers in the first nine months of 2018 purchased property as a secondary residence. A third of all Lucas Fox Madrid purchased property as a primary residence and a fifth bought for investment purposes.
  • According to official figures the number of sales transactions in the Community of Madrid in the first eight months of 2018 increased by 9% over the same period in 2017, averaging 6,455 sales per month. The number of sales transactions of new homes also rose, by 11%, when comparing sales in the first eight 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 eight months of 2018, the same proportion as in the first eight months of 2017. (INE)
  • The total value of sales transactions in the Community of Madrid in the first six months of 2018 grew by 19% over the amount of trading for the same period in 2017, with the total value of sales transactions of resale properties increasing by 20% and that of new homes increasing by 14%. (Spanish Department of Development)
  • The number of prime market sales transactions (over €900,000) in the Community of Madrid in the first quarter of 2018 increased by 50% compared to the prime sales in the first quarter of 2017. (Spanish Department of Development)
  • The number of foreign buyers in the Community of Madrid accounted for 6% of the total sales in the second quarter of 2018 compared to 5% in the second quarter of 2017. (Registradores)
  • Average property prices in Madrid city showed an annual increase of 21% at the end of the third quarter of 2018, ending the quarter on €3,834 per square metre. Average prices in the Centro district (including the neighbourhoods of Sol, Justicia and Cortes) rose by 10%, ending the quarter on an average of €4,915 per square metre. The sought-after districts of Chamartín, Chamberí and Salamanca ended the quarter on €5,143 per square metre (17% increase), €5,243 per square metre (13% increase) and €5,987 per square metre (14% increase) respectively. (Idealista, resale property prices)
  • Average rental prices in Madrid city showed an annual increase of 7% at the end of the third quarter of 2018, ending the quarter on €16.4 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 €19 per square metre (3% increase), €16.7 per square metre (4% increase), €18.2 per square metre (7% increase) and €19.1 per square metre (6% increase) respectively. (Idealista)
  • The number of passengers arriving at Madrid-Barajas airport in the first nine months of 2018 showed an annual increase of 8% over passenger arrivals in the same period in 2017. Just over 43.5 million passengers arrived at Madrid-Barajas airport in the first nine months of 2018. (Aena)
  • International tourism in the Community Madrid in the first eight months of 2018 increased by 4% over the same period in 2017. The Community of Madrid hosted just over 4.5 million international tourists in the first eight months of 2018. (INE)

Barcelona

  • The average price of a property sold by Lucas Fox Barcelona in the first nine months of 2018 showed an increase of 14% compared to the first nine months of 2017, averaging at €802,624.
  • The political situation in Catalonia has continued to have an effect on Lucas Fox’s sales in Barcelona with both the number of sales transactions and the total value of sales transactions in the first nine months of 2018 down compared to the same period in 2017. However, the number of sales completed in the third quarter of 2018 was about the same as those completed in both the first and second quarter of 2018 in total, suggesting confidence is returning to the market.
  • Following on from recent trends, national buyers accounted for around a third of all Lucas Fox Barcelona sales in the first nine months of 2018. US buyers accounted for 17% of all sales and UK buyers accounted for 4%, slightly down on recent figures. 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 24% of all buyers, US buyers 24% and UK buyers 12%. Of those purchasing property in the prime market range (over €900,000) 38% came from Spain, 17% from the United States and 8% from the United Kingdom.
  • A similar proportion of all Lucas Fox Barcelona buyers purchased property as either a primary residence (36%) or for investment purposes (38%). 19% bought as a secondary residence.
  • The number of rental transactions completed by Lucas Fox Barcelona in the first nine months of 2018 increased substantially, by 36%, compared to the same period in 2017, with the price averaging at €2,305 per month, down 13% on the average price in the same period in 2017.
  • According to official figures the number of sales transactions in Barcelona in the first eight months of 2018 only increased by just under 1% over the same period in 2017, averaging 4,727 sales per month, largely due to last year’s political situation. The number of sales transactions of new homes showed a more significant increase (20%) when comparing sales in the first eight months of 2018 with those in the same period in 2017. Sales of new homes represented 14% of the total number of sales in the first eight months of 2018, compared to 12% in the first eight months of 2017. (INE)
  • The total value of sales transactions in Barcelona in the first six months of 2018 grew by 1% over the amount of trading for the same period in 2017, with the total value of sales transactions of resale properties growing by 1% and that of sales of new homes sales by 5%. (Spanish Department of Development)
  • The number of mid-market sales transactions (between €450,001 and €900,000) in Barcelona in the first quarter of 2018 registered a decrease, of 2%, when compared to the number of mid-market sales in the first quarter of 2017. (Spanish Department of Development)
  • The number of prime market sales transactions (over €900,000) in Barcelona in the first quarter of 2018 also decreased, by 21%, when compared to the number of prime sales in the first quarter of 2017. (Spanish Department of Development)
  • The number of foreign buyers in Barcelona accounted for 9% of the total sales in the second quarter of 2018 compared to 10% in the second quarter of 2017. (Registradores)
  • Average property prices in Barcelona city showed a slight annual increase, of 1%, at the end of the third quarter of 2018, ending the quarter on €4,388 per square metre. Although slightly down on the average price at the end of the second quarter of 2018, average prices in the desirable district of Gràcia showed an increase of 8% at the end of the third quarter, ending the quarter on €4,393 per square metre. Average prices also rose in the sought-after district of Sarrià-Sant Gervasi, where prices ended the quarter on €5,323 per square metre, showing an increase of 2%. However, average prices in the central district of Eixample registered a slight decrease, of 2%, ending the quarter on €5,104 per square metre. (Idealista, resale property prices)
  • Average rental prices in Barcelona city showed an annual decrease of 5% at the end of the third quarter of 2018, ending the quarter on €17.3 per square metre. Average prices in several prime areas have come down – in Eixample by 9% to €17.7 per square metre, in Gràcia by 7% to €16.5 per square metre and in Barcelona Old Town by 3% to €19.1 per square metre. (Idealista)
  • The number of passengers arriving at Barcelona-El Prat airport in the first nine months of 2018 showed an annual increase of 5% over passenger arrivals in the same period in 2017. Just over 38.6 million passengers arrived at Barcelona-El Prat airport in the first nine months of 2018. (Aena)
  • International tourism in Catalonia in the first eight months of 2018 decreased slightly over the same period in 2017, by 3%. Catalonia hosted just under 13.5 million international tourists in the first eight months of 2018. (INE)

Valencia

  • The number of sales by Lucas Fox Valencia was down slightly in the first nine months of 2018, by 3%, compared to the same period in 2017. However, the value of sales transactions was significantly up, by 35%, when comparing the first nine months of 2018 with the same period in 2017. The average property price in the first nine months of 2018 was €558,694, up from €401,983 in the same period in 2017, showing an increase of 39%.
  • National buyers accounted for 61% of all Lucas Fox Valencia sales in the first nine months of 2018. The same proportion of buyers came from both the United States (6%) and the United Kingdom (6%). The remainder of the buyers came from Latin America, Asia and other European countries.
  • Just over half of all Lucas Fox Valencia buyers in the first nine months of 2018 purchased property as a main home. 22% 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 in the first nine months of 2018 increased significantly, by 76%, compared to the same period in 2017, with the price averaging at €1,816 per month.
  • According to official figures the number of sales transactions in Valencia in the first eight months of 2018 increased by 16% over the same period in 2017, averaging 2,635 sales per month. However, the number of sales transactions of new homes showed a decrease of 16% when comparing sales in the first eight 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 eight months of 2018, compared to 14% in the first eight months of 2017. (INE)
  • The total value of sales transactions in Valencia in the first six months of of 2018 grew by 20% over the amount of trading for the same period in 2017, with the total value of sales transactions of resale properties increasing by 25%. 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 second quarter of 2018 compared to 9% in the second quarter of 2017. (Registradores)
  • Average property prices in Valencia city showed an annual increase of 15% at the end of the third quarter of 2018, ending the quarter on €1,897 per square metre. Average prices in the Old Town, Eixample and El Pla del Real ended the quarter on €2,719 per square metre (8% increase), €2,998 per square metre (14% increase) and €2,558 per square metre (14% increase) respectively. (Idealista, resale property prices)
  • Average rental prices in Valencia city showed an annual increase of 10% at the end of the third quarter of 2018, ending the quarter on €9 per square metre. (Idealista)
  • The number of passengers arriving at Valencia airport in the first nine months of 2018 showed an annual increase of 16% over passenger arrivals in the same period in 2017. Just under 6 million passengers arrived at Valencia airport in the first nine months of 2018. (Aena)
  • International tourism in Valencia continued to increase in the first eight months of 2018, growing by 2% over international visitor numbers in the same period in 2017. The Valencian Community hosted just under 6.5 million international tourists in the first eight months of 2018. (INE)

Maresme

  • Both the number and value of sales by Lucas Fox Maresme in the first nine months of 2018 decreased compared to the same period in 2017, by 20% and 60% respectively. The average property price in the first nine months of 2018 was around €525,000, showing a decrease of 49% over the average price in the same period in 2017.
  • National buyers accounted for 42% of all Lucas Fox Maresme sales in the first nine months of 2018. Of the international buyers, 14% came from the United State with the remaining buyers coming from European countries.
  • The majority of Lucas Fox Maresme buyers continue to purchase property as either a primary residence (58%) or for relocation purposes (17%), with the remainder buying as a secondary residence.
  • According to official figures the number of sales transactions in the Maresme region in the second quarter of 2018 increased by 18% over the same period in 2017. (Generalitat de Catalunya)
  • Average property prices in the Maresme region showed an annual increase of 12% at the end of the second quarter of 2018, ending the quarter on €2,010 per square metre. (Generalitat de Catalunya)

Sitges

  • Both the number of sales transactions and the total value of sales transactions by Lucas Fox Sitges in the first nine months of 2018 decreased, by 17% and 23% respectively, compared to the same period in 2017. The average property price in the first nine months of 2018 also went down, to €961,766, showing a decrease of 7% compared to the average price in the same period in 2017.
  • Foreign buyers accounted for 87% of al Lucas Fox Sitges sales in the first nine months of 2018, with the majority coming from Europe. 20% of all buyers came from the United Kingdom.
  • Two thirds of all Lucas Fox Sitges buyers in the first nine months of 2018 purchased property as a secondary residence, with a third buying as a primary residence.
  • Average property prices in Sitges showed an increase of 4% at the end of the third quarter of 2018, ending the quarter on €3,898 per square metre. Average prices in the neighbouring areas of Castelldefels and Gavà also increased compared to the average price at the end of the third quarter of 2017, ending the third quarter of 2018 on €3,407 (12% increase) and €2,951 per square metre (13% increase) respectively. (Idealista, resale property prices)
  • Average rental prices in Sitges showed an annual increase of 14% at the end of the third quarter of 2018, ending the quarter on €15.5 per square metre. Average rental prices in neighbouring Gavà also increased, by 37%, ending the third quarter on €17.9 per square metre. Average rental prices in Castelldefels showed a less significant increase, of 1%, ending the third quarter on €14.6 per square metre. (Idealista)

Costa Brava & Girona

  • Lucas Fox Costa Brava has had an excellent year so far with both the number of sales and total value of sales in the first nine months of 2018 up significantly compared to the same period in 2017. The average property price in the first nine months of 2018 also rose, to just under €1.3 million, showing an increase of 18% over the average price in the same period in 2017.
  • National buyers accounted for 13% of all Lucas Fox Costa Brava sales in the first nine months of 2018. French buyers accounted for 31% with the same proportion coming from the United Kingdom. The remaining buyers largely came from other European countries, with just 4% coming from the United States.
  • The majority of Lucas Fox Costa Brava buyers in the first nine months of 2018 purchased property as a secondary residence (70%) with 13% buying as a primary residence and 9% for investment purposes.
  • According to official figures the number of sales transactions in Girona Province in the first eight months of 2018 increased by 3% over the same period in 2017, averaging 936 sales per month. The number of sales transactions of new homes also rose, by 17%, when comparing sales in the first eight 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 eight months of 2018, slightly down on the proportion (15%) in the first eight months of 2017. (INE)
  • The total value of sales transactions in Girona Province in the first six months of 2018 grew by 2% over the amount of trading for the same period in 2017, with the total value of sales transactions of resale properties increasing by 2% and the total value of sales transactions of new homes increasing by 8%. (Spanish Department of Development)
  • The number of prime market sales transactions (over €900,000) in Girona Province in the first quarter of 2018 decreased by 6% compared to the prime sales in the first quarter of 2017. (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 25% of the total sales in the second quarter of 2018, down from 29% in the second quarter of 2017. (Registradores)
  • Average property prices in Girona Province showed an annual increase of 3% at the end of the third quarter of 2018. In the sought-after area of Palamós average prices increased by 4% and average prices in Girona city itself increased by 15%. (Idealista, resale property prices)

Marbella-Costa del Sol

  • Lucas Fox Marbella has had a very successful year so far with the both the number of sales and total value of sales transactions in the first nine months of 2018 increasingly substantially compared to the same period in 2017. The average property price in the first nine months of 2018 also rose significantly, to just over €1 million, showing an increase of 80% over the average price in the same period in 2017.
  • Foreign buyers accounted for 88% of all Lucas Fox Marbella sales in the first nine months of 2018, with just under a third of all foreign buyers coming from the United Kingdom and the remainder coming from other European countries.
  • Continuing previous trends, all Lucas Fox Marbella buyers in the first nine months of 2018 purchased property as a secondary residence.
  • According to official figures the number of sales transactions in Málaga Province in the first eight months of 2018 increased by 6% over the same period in 2017, averaging 2,801 sales per month. The number of sales transactions of new homes also increased, by 3%, when comparing sales in the first eight 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 eight months of 2018, the same proportion as in the first eight of 2017. (INE)
  • The total value of sales transactions in Málaga Province in the first six months 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 17% and the total value of sales transactions of new homes increasing by 69%. (Spanish Department of Development)
  • The number of prime market sales transactions (over €900,000) in Málaga Province in the first quarter of 2018 showed a slight increase of 1% when compared to the prime sales in the first quarter of 2017. (Spanish Department of Development)
  • The number of foreign buyers in the Málaga Province accounted for 27% of the total sales in the second quarter of 2018 compared to 29% in the second quarter of 2017. (Registradores)
  • Average property prices in Málaga Province showed an annual increase of 12% at the end of the third quarter of 2018, ending the quarter on €2,079 per square metre. Average prices in Benahavís, Estepona and Marbella also increased, ending the quarter on €2,347 per square metre (12% increase), €2,-49 per square metre (8% increase) and €2,803 per square metre (7% increase) respectively. (Idealista, resale property prices)
  • Average rental prices in Málaga Province showed an annual increase of 8% at the end of the second quarter of 2018, ending the quarter on €9.8 per square metre. (Idealista)
  • The number of passengers arriving at Málaga-Costa del Sol airport in the first nine months of 2018 showed an annual increase of 1% over passenger arrivals in the same period in 2017. Just under 15 million passengers arrived at Málaga-Costa del Sol airport in the first nine months of 2018. (Aena)

Ibiza

  • Lucas Fox Ibiza has had an extremely success year so far with both the number of sales and the total value of sales in the first nine months of 2018 up significantly compared to the same period in 2017. The average property price in the first six months of 2018 was €1.25 million, showing an increase of 14% over the average price in the same period in 2017.
  • Foreign buyers accounted for 91% of all Lucas Fox Ibiza sales in the first nine months of 2018, with the majority coming from European countries and 10% of all international buyers coming from the United Kingdom.
  • All Lucas Fox Ibiza buyers in the first nine months of 2018 purchased property as a secondary residence.
  • According to official figures the number of sales transactions in the Balearic Islands in the first eight months of 2018 decreased slightly, by 2%, over the same period in 2018, averaging 1,348 sales per month. The number of sales transactions of new homes remained steady in the first eight months when compared to the same period in 2017. Sales of new homes represented 18% of the total number of sales in the first eight months of 2018, compared to 17% in the first eight months of 2017. (INE)
  • The total value of sales transactions in the Balearic Islands in the first six months of 2018 showed a slight decrease, of 1%, over the amount of trading for the same period in 2017, with the total value of sales transactions of resale properties also decreasing by 1%. However, the total value of sales transactions of new homes in the first six months of 2018 showed an increase, of 6%, 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 first quarter of 2018 decreased by 18% compared to the prime sales in the first quarter of 2017. (Spanish Department of Development)
  • The number of foreign buyers in the Balearic Islands accounted for 29% of the total sales in the second quarter of 2018, a similar proportion as in the second quarter of 2017. (Registradores)
  • Average property prices across the Balearic Islands showed an annual increase of 16% at the end of the third quarter of 2018, with prices ending the quarter on €2,756 per square metre. Average prices in Ibiza Old Town, Sant Josep de sa Talaia and Santa Eulària des Riu ended the second quarter on €5,020 per square metre (3% decrease), €3,577 (14% increase) and €3,729 per square metre (11% increase) respectively. (Idealista, resale property prices)
  • The number of passengers arriving at Ibiza airport in the first nine months of 2018 showed an annual increase of 2% over passenger arrivals in the same period in 2017. Just under 7 million passengers arrived at Ibiza airport in the first nine months of 2018. (Aena)

Note the following figures are provisional:

  • INE (Sales Transactions) (from January 2018)
  • INE (International Tourism) (from January 2018)
  • Spanish Department of Development (from Q2 2018)

Lucas Fox offers exceptional properties throughout all our regions:

View properties for sale in Barcelona with Lucas Fox
View properties for sale in Madrid with Lucas Fox
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View properties for sale in Maresme with Lucas Fox
View properties for sale in Sitges 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

View Lucas Fox Spanish Real Estate Market Analysis Q1 & Q2 2018

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