Lucas Fox Spanish Real Estate Market Analysis Q1 2019

Strong sales for Lucas Fox in the three main cities sees 2019 off to a positive start.

Lucas Fox has had an exceptionally good first quarter of 2019, with the number of sales transactions completed in the first three months of 2019 increasing by 73% compared to the number of sales in the same period in 2018. The first quarter of 2018 had been a challenging one, particularly in Barcelona, following the knock-on effects of the Catalan referendum. The total value of sales transactions showed an increase of almost 100% and the number of New Development sales almost quadrupled.

The average price of a property sold by Lucas Fox in the first quarter of 2019 increased by 15% when compared to the average price in the same period in 2018, averaging at €1.1 million.

Lucas Fox’s sales in the first quarter of 2019 continued to be dominated by foreigners who accounted for just under two thirds (63%) of the total transactions, the majority coming from European countries.

41% of all Lucas Fox buyers purchased property for investment purposes. 28% of all buyers purchased property as a secondary residence and 24% as a primary residence.

According to official data from the National Institute of Statistics (INE), just over 91,300 properties exchanged hands in the first two months of the year, an increase of 2% over the same period in 2018. The number of new homes in the same period showed a more substantial increase (14%), with just over 18,000 new homes being sold across Spain.

According to data from the Spanish Property Registry, in 2018 almost 65,500 homes were sold to foreigners, representing 12.64% of total sales, around the same number of homes that were sold to foreigners in the peak of 2007 and almost 5,000 more than were sold in 2017.

Sales Transactions - Real Estate Market Analysis

Idealista showed that resale property prices (based on asking prices) have continued to rise year-on-year, recording an annual increase of 6% at the end of the first quarter of 2019.

Real Estate Market Analysis by Region

Madrid

  • Lucas Fox Madrid has had an excellent first quarter with the number of sales increasing by 50% when compared to the same period in 2018, and with the total value of sales transactions also showing a substantial increase.
  • Sales were equally split between national and international in the first quarter of 2019.
  • Two thirds of all Lucas Fox Madrid buyers in the first quarter of 2019 purchased property as a secondary residence with the remainder being split equally between those buying as a primary residence and for investment purposes.
  • According to official figures the number of sales transactions in the Community of Madrid in the first two months of 2019 increased by 3% over the same period in 2018, averaging 6,593 sales per month. (INE)
  • The number of sales of new homes in the Community of Madrid in the first two months of 2019 increased by 29% over the same period in 2018. The sales of new homes made up 22% and 27% of the total sales in the first two months of 2018 and 2019 respectively. (INE)
  • Average property prices in Madrid city showed an annual increase of 14% at the end of March 2019, ending the quarter on €3,721 per square metre. Average prices in the Centro district (including the neighbourhoods of Sol, Justicia and Cortes) rose by 7%, ending the quarter on an average of €5,069 per square metre. The sought-after districts of Chamartín, Chamberí and Salamanca ended the quarter on €5,174 per square metre (7% increase), €5,174 per square metre (7% increase) and €5,818 per square metre (8% increase) respectively. In the up-and-coming area of Tetuán average prices ended the quarter on €3,725 per square metre, showing an annual increase of 13%. (Idealista, resale property prices based on asking prices)

Barcelona

  • The political situation in Catalonia had a noticeable effect on Lucas Fox’s sales in Barcelona in the first quarter of 2018 but there has been a significant recovery so far this year with the number of sales transactions in the first quarter of 2019 more than tripling compared to the same period in 2018. The average price of a property sold by Lucas Fox Barcelona in the first quarter of 2019 also increased, by 9%, averaging at almost €1 million.
  • International buyers accounted for just under three quarters (73%) of all Lucas Fox Barcelona sales in the first quarter of 2019, with UK buyers accounting for 12% and US buyers 15%. Middle Eastern buyers increased, accounting for 14% of all buyers. Of those buyers purchasing property in the mid-market range (between €450,000 and €900,000) national buyers accounted for almost a quarter (24%) of all buyers, US buyers 15% and UK buyers 12%. Of those purchasing property in the prime market range (over €900,000) national buyers also accounted for almost a quarter (23%) of all buyers. Of the foreign buyers in the prime market range, 20% came from the United Kingdom, evidently undeterred by the prospect of Brexit.
  • Following on from recent trends, the majority of all Lucas Fox Barcelona buyers purchased property for investment purposes (54%). 20% purchased property as a primary residence and 19% as a secondary residence.
  • 56% of Lucas Fox Barcelona buyers purchasing property in the mid-market range (between €450,000 and €900,000) bought homes for investment purposes, with the majority of the remainder buying as a primary residence.
  • In the prime market range (over €900,000), the majority of Lucas Fox Barcelona buyers purchased either for investment purposes (38%) or as a primary residence (31%), with those buying as a secondary residence accounting for 15%.
  • The number of rental transactions completed by Lucas Fox Barcelona in the first quarter of 2019 increased by 10% compared to the same period in 2018, with the price averaging at €2,294 per month.
  • According to official figures the number of sales transactions in Barcelona Province in the first two months of 2019 increased by 6% over the same period in 2018, averaging 5,142 sales per month. (INE)
  • The number of sales of new homes in Barcelona Province in the first two months of 2019 increased by 18% over the same period in 2018, with sales of new homes making up 16% and 18% of the total sales in the first two months of 2018 and 2019 respectively. (INE)
  • Average property prices in Barcelona city showed a slight annual increase, of 1.5%, at the end of March 2019, ending the quarter on €4,217 per square metre. Average prices in the desirable district of Gràcia showed an annual increase of 3% at the end of March 2019, ending the quarter on €4,409 per square metre. Average prices also rose in the sought-after district of Sarrià-Sant Gervasi, where prices ended the quarter on €5,437 per square metre, showing an annual increase of 4%, and in the district of Sant Martí (which includes the desirable neighbourhood of Diagonal Mar), where prices ended the quarter on €3,904 per square metre, showing an annual increase of 1.4%. In the central district of Eixample average prices remained fairly steady with just a slight increase of 0.9%, ending the quarter on €4,777 per square metre. (Idealista, resale property prices based on asking prices)

Valencia

  • The number of sales transactions completed by Lucas Fox Valencia in the first quarter of 2019 increased by 17% when compared to the same period in 2018. The total value of sales transactions in the first quarter of 2019 showed an increase of almost 50% over the same period in 2018, with the average price of a home sold by Lucas Fox Valencia increasing by 27%, to €511,000.
  • National buyers accounted for 71% of all Lucas Fox Valencia sales in the first quarter of 2019, with the remaining buyers coming from the Middle East and Asia.
  • 43% of all Lucas Fox Valencia buyers in the first quarter of 2019 purchased property as a main home with the same share buying for investment purposes.
  • The number of rental transactions completed by Lucas Fox Valencia in the first quarter of 2019 increased by 64% when compared to the same period in 2018.
  • According to official figures, the number of sales transactions in Valencia Province in the first two months of 2019 increased by 3% over the same period in 2018, averaging 2,688 sales per month. (INE)
  • The number of sales of new homes in Valencia Province in the first two months of 2019 increased by 23% over the same period in 2018, with sales of new homes making up 10% and 12% of the total sales in the first two months of 2018 and 2019 respectively. (INE)
  • Average property prices in Valencia city ended the first quarter of 2019 on €1,735 per square metre, showing an annual increase of 13%. Average prices in the sought-after districts of the Old Town, Eixample and El Pla del Real ended the quarter on €2,720 per square metre (9% increase), €2,882 per square metre (10% increase) and €2,562 per square metre (11% increase) respectively. (Idealista, resale property prices based on asking prices)

Sitges

  • National buyers accounted for a third of all Lucas Fox Sitges sales in the first quarter of 2019 and half of the foreign buyers came from the United Kingdom.
  • Two thirds of all Lucas Fox Sitges buyers in the first quarter of 2019 purchased property as a secondary residence, with the remainder buying as a primary residence.
  • Average property prices in Sitges showed an annual increase of 4% at the end of March 2019, ending the quarter on €3,742 per square metre. (Idealista, resale property prices based on asking prices)

Costa Brava & Girona

  • Continuing with the success of 2018, the number of sales completed by Lucas Fox Costa Brava in the first quarter of 2019 increased by 13% when compared to the same period in 2018.
  • International buyers accounted for two thirds of all Lucas Fox Costa Brava sales in the first quarter of 2019 with a third of all foreign buyers coming from the United Kingdom.
  • Almost half (44%) of all Lucas Fox Costa Brava buyers in the first quarter of 2019 purchased property as a secondary residence, with the remainder mainly buying as either a primary residence or for investment purposes.
  • According to official figures the number of sales transactions in Girona Province in the first two months of 2019 increased by 3% over the same period in 2018, averaging 952 sales per month. (INE)
  • Average property prices in Girona Province showed an annual increase of 3% at the end of March 2019. In Girona city itself property prices increased by 18%, ending the quarter on €2,126 per square metre. Average prices in the following sought-after areas also all showed annual increases, ending the first quarter as follows: Castell-Platja d’Aro (€2,863 per square metre, 3% increase), Palafrugell (€1,990 per square metre, 6% increase), Blanes (€1,756 per square metre, 6% increase), Lloret de Mar (€1,934 per square metre, 2% increase), Sant Feliu de Guíxols (€2,154 per square metre, 5% increase). However, average prices in Begur and Cadaqués decreased, ending the quarter on €2,726 per square metre (5% decrease) and €4,240 per square metre (6% decrease) respectively. Inland, average prices in the desirable areas of Pals, La Bisbal d’Empordà and Banyoles also showed small decreases, ending the quarter on €2,297 per square metre (3% decrease), €1,178 per square metre (0.3% decrease) and €1,370 per square metre (0.6% decrease) respectively. (Idealista, resale property prices based on asking prices)

Marbella-Costa del Sol

  • The average price of a property sold by Lucas Fox Marbella in the first quarter of 2019 increased by 17%, averaging at €1.7 million.
  • There has been a significant change in the nationality of Lucas Fox Marbella buyers with all buyers in the first quarter of 2019 coming from Spain.
  • Two thirds of all Lucas Fox Marbella buyers in the first quarter of 2019 purchased property as a secondary residence, with the remainder buying for investment purposes.
  • According to official figures the number of sales transactions in Málaga Province (which includes Marbella) in the first two months of 2019 showed a decrease, of 5%, over the same period in 2018, averaging 2,641 sales per month. However, the number of sales of new homes in Málaga Province in the first two months of 2019 increased by 35% over the same period in 2018. The number of sales of new homes made up 17% and 24% of the total sales in the first two months of 2018 and 2019 respectively. (INE)
  • Average property prices in Málaga Province showed an annual increase of 9% at the end of March 2019, ending the quarter on €2,057 per square metre. Average prices in Benahavís, Estepona and Marbella also increased, ending the quarter on €2,929 per square metre (8% increase), €2,076 per square metre (10% increase) and €2,775 per square metre (9% increase) respectively. (Idealista, resale property prices based on asking prices)

Ibiza

  • According to official figures the number of sales transactions in the Balearic Islands in the first two months of 2019 showed a decrease, of 13%, over the same period in 2018, averaging 1,283 sales per month. (INE)
  • Average property prices in Sant Josep de sa Talaia, Santa Eulària des Riu and Ibiza Old Town all increased, ending the quarter on €5,020 per square metre (8% increase), €4,838 per square metre (15% increase) and €5,174 per square metre (9% increase) respectively. (Idealista, resale property prices based on asking prices)

For more information visit Lucas Fox Spanish Real Estate Market Reports 2018.

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