Lucas Fox Spanish Real Estate Market Analysis Q1 & Q2 2019

Record sales for Lucas Fox’s Catalonia offices in the first half of 2019 – Lucas Fox Q1 & Q2 2019 Market Report.

Lucas Fox Q1Q22019

The Spanish property market has continued to grow throughout 2019 so far with 222,596 properties exchanging hands in the first five months of the year, according to the National Institute of Statistics (INE), an increase of 2% over the same period in 2018. The number of new homes in the first five months of 2019 showed a higher growth, of 11%, with 42,086 new homes being sold across Spain, representing 19% of the total sales, a slightly higher proportion than in the same period in 2018 when sales of new homes represented 17% of the total sales.

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 whole of 2018 increased by 16% compared to the number of mid-market sales in the whole of 2017. The number of prime sales transactions (over €900,000) in the whole of 2018 showed a similar growth, increasing by 14% when compared to those in the whole of 2017.

According to official data from the Spanish Property Registry (Registradores) just over 16,000 homes were sold to foreigners in the first quarter of 2019 (representing just over 12% of total sales), slightly fewer than in the same period in 2018, when sales of new homes represented just over 13% of total sales.

Lucas Fox has seen significant growth so far this year. The number of sales in the first six months of 2019 increased by 85% when compared to the same period in 2018 and the value of sales almost doubled (93%), mainly due to the completion of projects that had been in construction in the last two years. The average price of a property sold by Lucas Fox in the first six months of 2019 increased by 4% when compared to the average price in the same period in 2018, averaging at €914,371.

Lucas Fox sales in the first six months of 2019 continue to be dominated by foreigners who accounted for 60% of all buyers, with the majority coming from the Middle East, the United Kingdom, the United States and Latin America. This proportion is slightly down on the equivalent period in 2018, when foreigners accounted for 66% of all buyers.

A quarter of all Lucas Fox buyers purchased property as a primary residence in the first six months of 2019 with those buying as a secondary residence or investment property each accounting for a third of all sales.

Leading property portal Idealista showed that property prices across Spain have continued to increase year-on-year, recording an annual increase of 6% in June 2019.

Spain’s economic growth continues but at a slightly slower pace than the past three years. In 2018 the economy grew at a rate of 2.5% but this is expected to decrease slightly in 2019 with growth predicted at 2.2% by the IMF. However, this is still significantly higher than the growth predictions in Germany (1.3%), France (1.5%) and the UK (1.5%).

Figures from Spain’s National institute of Statistics (INE) from Q1 2019 show that Spain’s unemployment fell by 441,900 when compared to the same period in 2018, showing a decrease of 11.64%.

Spain’s tourism sector has registered record figures again for both the number of foreign visitors to the country and for their spend. In the first five months of 2019 just over 29.3 million visitors came to Spain, an increase of 3% over the same period in 2018, spending a total of €30.7 billion, according to the National Institute of Statistics (INE).

Spain has become the third biggest hub for Airbnb, with a direct economic impact (based on host income and estimated guest spending) of $6.9 billion, according to research from La Caixa.

Lucas Fox Barcelona

  • The political situation in Catalonia had a noticeable effect on Lucas Fox sales in Barcelona in the first six months of 2018 but since then there has been a significant recovery, showing that confidence is returning to the market. The number of sales transactions by Lucas Fox Barcelona in the first six months of 2019 more than tripled compared to the same period in 2018 and the total value of sales transactions almost quadrupled. The average price of a property sold by Lucas Fox Barcelona in the first six months of 2019 also increased, by 19%, averaging at almost €1 million.
  • National buyers accounted for 31% of all Lucas Fox Barcelona sales in the first six months of 2019. Middle Eastern buyers accounted for 23% US buyers accounted for 11% and UK buyers 7%. Middle Eastern buyers have been key investors in New Development homes in Barcelona. The remaining buyers mainly came from Asia, Latin America and 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, Middle Eastern buyers 30%, US buyers 11% and UK buyers 7%. Of those purchasing property in the prime market range (over €900,000) national buyers accounted for 34% of all buyers, with 15% of all buyers coming from the Middle East, 6% from the United States and 6% from the United Kingdom. The remaining buyers mainly came from other European countries.
  • The majority of all Lucas Fox Barcelona buyers in the first six months of 2019 purchased property for investment purposes (47%, up from 41% in the same period in 2018). 20% bought as a primary residence and 21% as a secondary residence. Of those buyers in the mid-market range (between €450,000 and €900,000) 50% purchased property for investment purposes, 17% as a secondary residence and 13% as a primary residence. Of those buyers in the prime market range (over €900,000) 37% purchased property as a primary residence, 33% as a secondary residence and 31% for investment purposes.

Lucas Fox Q1Q22019

Lucas Fox Q1Q22019

  • The number of rental transactions completed by Lucas Fox Barcelona in the first six months of 2019 increased by 18% compared to the same period in 2018, with the price averaging at €2,326 per month, up 7% on the average price in the same period in 2018.
  • According to official figures the number of sales transactions in Barcelona in the first five months of 2019 increased by 3% over the same period in 2018, averaging 4,884 sales per month. The number of sales transactions of new homes showed a more significant increase (15%) when comparing sales in the first five months of 2019 to those in the same period in 2018. Sales of new homes represented 17% of the total number of sales in the first five months of 2019, compared to 15% in the first five months of 2018. (INE)

Lucas Fox Q1Q22019

  • The total value of sales transactions in Barcelona Province in the first quarter of 2019 grew by 16% over the amount of trading for the same period in 2018, with the total value of sales transactions of resale properties showing an increase of 14%. The total value of sales transactions of new homes showed an even more significant increase, of 38%, when compared to the total value in the same period in 2018. (Spanish Department of Development)
  • The number of mid-market sales transactions (between €450,001 and €900,000) in Barcelona in the whole of 2018 increased by 9% compared to the number of mid-market sales in the whole of 2017. (Spanish Department of Development)
  • The number of prime market sales transactions (over €900,000) in Barcelona in the whole of 2018 showed a slight decrease, of 2%, when compared to the number of prime sales in the whole of 2017. (Spanish Department of Development)
  • The number of foreign buyers in Barcelona Province accounted for 9% of the total sales in the first quarter of 2019 compared to 8% in the first quarter of 2018. (Registradores)
  • For the first time in five years, average property prices in Barcelona city showed a slight annual decrease, of just under 1%, ending the second quarter of 2019 on €4,206 per square metre. Average prices also decreased in the key districts of Barcelona Old Town, Eixample, Gràcia and Sant Martí, ending the second quarter of 2019 on €4,393 per square metre (1% decrease), €4,792 per square metre (1% decrease), €4,229 per square metre (6% decrease) and €3,794 per square metre (3% decrease) respectively. However, average prices in the desirable district of Sarrià-Sant Gervasi registered an increase, of 3%, ending the second quarter on €5,416 per square metre. (Idealista)

Lucas Fox Q1Q22019

  • Average rental prices in Barcelona city showed an annual increase of 1.4% in June 2019, ending the second quarter of 2019 on €16.5 per square metre. Average rental prices increased in all but two of Barcelona’s ten districts, with prices in the desirable districts of Gràcia and Sarrià-Sant Gervasi ending the second quarter of 2019 on €16.3 per square metre (5% increase) and €17 per square metre (0.6% increase) respectively. Average prices showed small decreases in Barcelona Old Town and Eixample, where they ended the second quarter on €18.3 per square metre (3% decrease) and €16.7 per square metre (0.2% decrease). (Idealista)
  • The number of passengers arriving at Barcelona-El Prat in the first six months of 2019 showed an annual increase of 5% over passenger arrivals in the same period in 2018. Just over 24.8 million passengers arrived at Barcelona-El Prat airport in the first six months of 2019. (Aena)
  • International tourism in Catalonia in the first five months of 2019 increased by 5% over the same period in 2018. Catalonia hosted almost 4.9 million international tourists in the first five months of 2019. (INE)

“In recent months we have seen a shift towards buyers looking for investment properties, especially for the Golden Visa and rentals. Age-wise they tend to be in their mid 40s upwards and work in senior management, finance or have their own businesses. This is particularly the case with Middle Eastern buyers, a demographic that has grown significantly in the last year. Products most in demand tend to be newly renovated with classic taste apartments in central locations such as Eixample and the Zona Alta, particularly Turó Park.”

Mohammed Butt
International Sales & Investments Manager Lucas Fox

Lucas Fox Madrid

  • Although the number of sales transactions completed by Lucas Fox Madrid in the first six months of 2019 registered a decrease of 17% when compared to the same period in 2018, the value of sales increased substantially (152%), due to a large increase (75%) in the number of prime sales (over €900,000).
  • National buyers accounted for half of all Lucas Fox Madrid sales in the first six months of 2019. Of the international buyers the majority came from Latin America (80% of all foreign buyers) with the remainder coming from Europe.
  • Half of all Lucas Fox Madrid buyers in the first six months of 2019 purchased property as a secondary residence with the other half buying either as an investment (30% of all buyers) or as a primary residence (20% of all buyers).

Lucas Fox Q1Q22019

  • According to official figures the number of sales transactions in the Community of Madrid in the first five months of 2019 decreased slightly, by 2%, when compared to the same period in 2018, averaging 6,281 sales per month. The number of sales transactions of new homes, however, rose by 16%, when comparing sales in the first five months of 2019 to those in the same period in 2018. Sales of new homes represented 25% of the total number of sales in the first five months of 2019, a higher proportion than in the first five months of 2018 when sales of new homes represented 21% of the total number of sales. (INE)

Lucas Fox Q1Q22019

  • The total value of sales transactions in the Community of Madrid in the first quarter of 2019 grew by 4% over the amount of trading for the same period in 2018, with the total value of sales transactions of new homes increasing substantially, by 45%. However, the total value of sales transactions of resale properties remained steady, showing a very small decrease of 0.6%, when compared to the total value in the same period in 2018. (Spanish Department of Development)
  • The number of prime market sales transactions (over €900,000) in the Community of Madrid in the whole of 2018 increased by 38% compared to the prime sales in the whole 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 first quarter of 2019, a similar proportion as in the first quarter of 2018. (Registradores)
  • Average property prices in Madrid city showed an annual increase of 9% in June 2019, ending the second quarter of 2019 on €3,810 per square metre. Average prices in the Centro district (including the neighbourhoods of Sol, Justicia and Cortes) rose by 2%, ending the second quarter on an average of €5,031 per square metre. The sought-after districts of Chamartín, Chamberí and Salamanca ended the second quarter on €4,934 per square metre (0.4% increase), €5,271 per square metre (2% increase) and €5,868 per square metre (6% increase) respectively. Average prices in the up-and-coming district of Tetuán showed one of the most significant increases (7%), ending the second quarter on €3,719 per square metre. (Idealista)

Lucas Fox Q1Q22019

  • Average rental prices in Madrid city showed an annual increase of 4% in June 2019, ending the second quarter of 2019 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 €18.4 per square metre (0.7% increase), €16.4 per square metre (4% increase), €18.2 per square metre (3% increase) and €18.17per square metre (0.8% increase) respectively. (Idealista)
  • The number of passengers arriving at Madrid-Barajas airport in the first six months of 2019 showed an annual increase of 7% over passenger arrivals in the same period in 2018. Just over 29.2 million passengers arrived at Madrid-Barajas airport in the first six months of 2019. (Aena)
  • International tourism in the Community Madrid in the first five months of 2018 increased by 10% over the same period in 2018. The Community of Madrid hosted just over 3.1 million international tourists in the first five months of 2019. (INE)

“The Madrid property market has seen varied activity during 2019 to date, with a strong start to the year, followed by a few months of lower activity due to uncertainty while awaiting national election results, and then from May onwards a significant increase in demand. There has been double digit price growth in key prime areas of the city over the last three years, and although some believe prices are reaching their peak, it is important to note that Madrid, Europe’s third largest capital, was highly under-valued coming out of the crisis and prices are still reasonable when comparing with London and Paris. Investment from Latin American buyers remains consistent, although the numbers of investors from Venezuela have reduced while Mexicans are buying up the city in full force.”

Rod Jamieson
Managing Director Lucas Fox

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 2019 decreased slightly, by 8% and 2% respectively, compared to the same period in 2018. However, the average property price in the first six months of 2019 rose to €552,448, showing an increase of 7%, due to an increase of 50% in the number of prime sales (over €900,000).
  • National buyers accounted for 77% of all Lucas Fox Valencia sales in the first six months of 2018. 5% of buyers came from the United Kingdom, 5% came from the Middle East and 4% from Asia, with the remaining buyers coming from other European countries.
  • 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 investment purposes.

Lucas Fox Q1Q22019

  • The number of rental transactions completed by Lucas Fox Valencia in the first six months of 2019 doubled when compared to the same period in 2018, with the price averaging at €2,087 per month.
  • According to official figures the number of sales transactions in Valencia Province in the first five months of 2019 showed a very slight decrease, of 1%, over the same period in 2018, averaging 2,568 sales per month. However, the number of sales transactions of new homes showed an increase, of 21%, when comparing sales in the first five months of 2019 to those in the same period in 2018. Sales of new home represented 12% of the total number of sales in the first five months of 2019, compared to 10% in the first five months of 2018. (INE)

Lucas Fox Q1Q22019

  • The total value of sales transactions in Valencia Province in the first quarter of 2019 remained steady when compared to the amount of trading in the same period in 2018. However, the total value of sales transactions of new homes increased significantly, by 62%, when compared to the total value in the same period in 2018. (Spanish Department of Development)
  • The number of foreign buyers in Valencia Province accounted for 11% of the total sales in the first quarter of 2019 compared to 10% in the first quarter of 2018. (Registradores)
  • Average property prices in Valencia city showed an annual increase of 9% in June 2019, ending the second quarter of 2019 on €1,749 per square metre. Average prices in the Old Town, L’Eixample and El Pla del Real also increased, ending the second quarter on €2,713 per square metre (2% increase), €2,941 per square metre (5% increase) and €2,543 per square metre (3% increase) respectively. The districts of Campanar and Jesús showed some of the most significant increases, with prices ending the second quarter on €2,154 per square metre (17% increase) and €1,328 per square metre (17% increase) respectively. (Idealista)

Lucas Fox Q1Q22019

  • Average rental prices in Valencia city showed an annual increase of 9% in June 2019, ending the second quarter of 2019 on €8.8 per square metre. (Idealista)
  • The number of passengers arriving at Valencia airport in the first six months of 2019 showed an annual increase of 12% over passenger arrivals in the same period in 2018. Just over 4 million passengers arrived at Valencia airport in the first six months of 2019. (Aena)
  • The Valencian Community hosted 3.2 million international tourists in the first five months of 2019, a similar number to the same period in 2018. (INE)

“The vast majority of our buyers are national and are searching for a primary residence. Age-wise they tend to be from 40 to 60 years old, and are business owners, retirees or working professionals. The products most in demand are apartments, penthouses and villas specifically in the areas of Los Monasterios, Patacona and Gran Via. We’re seeing buyers looking for much more transparency in the market and overall they are generally more demanding with their requirements than five years ago.”

Juan Luis Herrero
Partner Lucas Fox Valencia

Lucas Fox Maresme

  • Both the number and value of sales transactions by Lucas Fox Maresme in the first six months of 2019 went down when compared to the same period in 2018, largely due to a decrease in demand from international prime market buyers (over €900,000) and an increase in low and mid market national buyers. However, the average property price in the first six months of 2019 increased by 25%, averaging at €673,250.
  • National buyers accounted for half of all Lucas Fox Maresme sales in the first six months of 2019. 17% of buyers came from the United States and 17% from Asia.
  • Half of all Lucas Fox Maresme buyers in the first six months of 2019 purchased property as a primary residence with the remainder equally split between secondary residence, investment or relocation purposes.

Lucas Fox Q1Q22019

  • According to official figures the number of sales transactions in the Maresme region in the first quarter of 2019 increased by 36% over the same period in 2018. (Generalitat de Catalunya).

Lucas Fox Q1Q22019

  • Average property prices in the Maresme region showed an annual increase of 20% at the end of the first quarter of 2019, ending the quarter on €2,279 per square metre. Average prices in the sought-after areas of Alella and Premià de Dalt also increased, ending the first quarter of 2019 on €3,104 per square metre (12% increase) and €2,467 (32% increase) respectively. However, prices in the area of Cabrils decreased, by 9%, ending the first quarter on €2,020 per square metre. (Generalitat de Catalunya).

Lucas Fox Q1Q22019

“In the Maresme the majority of buyers are either young professionals or retirees looking for primary residences. Mid-market demand is currently strongest for detached family properties priced from €400,000 to €600,000. The area south of Mataró is seeing greatest movement with Alella showing to be the most active market. In general the market has become much more local in the past two years (including both domestic and resident international buyers) and this has brought down the average sales value. Until a couple of years ago the high-end of the market (over €900,000) was largely driven by international second home buyers but this sector of the market has dropped off significantly over the past 24 months and as a consequence we are now seeing very limited movement in the prime Maresme market.”

Tom Maidment
Partner Lucas Fox Maresme

Lucas Fox Sitges

  • Lucas Fox Sitges has had an extremely successful year so far with the number of sales transactions in the first six months of 2019 more than doubling and the total value of sales transactions increasing by 23%, when compared to the same period in 2018.
  • Foreign buyers accounted for 68% of all Lucas Fox Sitges sales in the first six months of 2019, a similar proportion to the same period in 2018, with the majority coming from Europe. 25% of all buyers came from the United Kingdom.
  • Around two thirds of all Lucas Fox Sitges buyers in the first six months of 2019 purchased property as a secondary residence, with 21% buying as a primary residence. and 11% buying for relocation purposes.

Lucas Fox Q1Q22019

  • Average property prices in Sitges showed an annual increase of 3% in June 2019, ending the second quarter of 2019 on €3,762 per square metre. Average prices in the neighbouring area of Castelldefels also showed an increase, of 5%, compared to the average price in June 2018, ending the second quarter of 2019 on €3,424. However, average prices in another neighbouring area, Gavà, showed an annual decrease, of 2%, ending the second quarter of 2019 on €3,052 per square metre. (Idealista)

Lucas Fox Q1Q22019

  • Average rental prices in Sitges showed an annual decrease of 5% in June 2019, ending the second quarter of 2019 on €13.2 per square metre. In the neighbouring area of Gavà average rental prices also decreased, by 4%, ending the second quarter of 2019 on €12.8 per square metre. However, average rental prices in neighbouring Castelldefels showed an increase, of 6%, ending the second quarter of 2019 on €14.2 per square metre. (Idealista)

“We’re seeing increasing numbers of national buyers especially Catalans based in Barcelona looking for second or weekend homes. There are slightly fewer Brits buying, probably because of Brexit, but they still easily make up the largest proportion of foreign buyers. Our buyers tend to be business owners or self-employed people working in IT or finance, generally aged between 30 and 60. They tend to look for town centre or seafront apartments, preferably with a tourist licence, or contemporary villas in the hills overlooking the town with sea views. The areas most in demand are the town centre, Vinyet, Vallpineda and Sant Pere de Ribes, which is particularly popular with young families looking to settle as it is cheaper and many schools are within walking distance.”

Rachel Haslam
Director Lucas Fox Sitges

Lucas Fox Costa Brava & Girona

  • Both the number and value of sales transactions by Lucas Fox Girona (including the city and its surrounding areas) in the first six months of 2019 increased when compared to the same period in 2018, by 29% and 3% respectively.
  • National buyers accounted for 45% of all Lucas Fox Girona sales in the first six months of 2018, UK buyers 22%, French buyers 11%, US buyers 11% and Latin American buyers 11%. In the coastal areas of the Costa Brava national buyers accounted for 28% of all Lucas Fox Costa Brava sales, UK buyers 15%, French buyers 15% and Scandinavian buyers 15%.
  • The majority of Lucas Fox Girona buyers purchased property as a secondary residence (45%), with 33% buying as a primary residence and 22% buying for investment purposes. Lucas Fox Costa Brava buyers mainly bought as a secondary residence (72%), with 14% of all buyers buying as a primary residence.

Lucas Fox Q1Q22019

Lucas Fox Q1Q22019

  • According to official figures the number of sales transactions in Girona Province in the first five months of 2019 increased by 6% over the same period in 2018, averaging 965 sales per month. However, the number of sales transactions of new homes decreased, by 14%, when comparing sales in the first five months of 2019 to those in the same period in 2018, as restrictions on building licences on the coast came into force. Sales of new homes represented 15% of the total number of sales in the first five months of 2019, down on the proportion (18%) in the first five months of 2018. (INE)

Lucas Fox Q1Q22019

  • The total value of sales transactions in Girona Province in the first quarter of 2019 grew by 23% over the amount of trading for the same period in 2018, with the total value of sales transactions of new homes almost doubling. The total value of sales transactions of resale properties in the first quarter of 2019 also increased, by 14%, when compared to the total value of sales in the same period in 2018. (Spanish Department of Development)
  • The number of prime market sales transactions (over €900,000) in Girona Province in the whole of 2018 increased by 34% when compared to the prime sales in the whole 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 first quarter of 2019, down slightly from the proportion in the first quarter of 2017 when foreign buyers accounted for 27% of the sales. (Registradores).
  • Average property prices in Girona Province showed an annual increase of 6% in June 2019, ending the second quarter of 2019 on €2,055 per square metre. Average prices in Girona city itself increased by 20%. (Idealista)

Lucas Fox Q1Q22019

“The buyer profile has not significantly changed in the last five years or so but we are seeing more high-end lifestyle buyers than previously and a big increase in prime market French buyers. The age range tends to be between 50 and 60 years and buyers have a diverse range of backgrounds, from company owners, lawyers and notaries to entrepreneurs and marine engineers. The coastal areas around Begur and Palafrugell remain the most sought-after, specifically, the bays of Llafranc, Calella, Tamariu and Aiguablava. The Punta Brava estate in Sant Feliu de Guíxols is also seeing substantial investment from boutique luxury developers and private investors. Sea view villas with private pools tend to be the most sought-after product. In general, the market is seeing more movement at the high end of the market now than at any time since the beginning of the crisis and prime areas of the coast are in high demand.”

Tom Maidment
Partner Lucas Fox Costa Brava & Girona

“The average buyer in Girona is relatively young, normally aged between 35 and 55 years old. They tend to be entrepreneurs, business owners or professionals with motivation split between investment, primary and secondary residences. The Baix Empordà remains the most sought-after location amongst high-end buyers of rustic properties. However, we are seeing movement in various areas within easy reach (30km) of Girona city, including El Gironès, La Garrotxa and Pla de l’Estany. Demand in the rustic market is fairly diverse. During these past six months we have sold restored masias, luxury estates, masias requiring renovation, ruins and restored townhouses. In Girona city properties in the Barri Vell (historic quarter) are those most in demand, yet supply is limited. Overall, there is a more active national market than five years ago. Demand is more diverse than ever with foreign buyers coming from all over the world with notably more interest from US clients.”

Tom Maidment
Partner Lucas Fox Costa Brava & Girona

Lucas Fox Marbella-Costa del Sol

  • Both the number and value of sales transactions by Lucas Fox Marbella in the first six months of 2019 decreased when compared to the same period in 2018.  However, the average property price in the first six months of 2019 increased, by 22%, averaging at just under €1.4 million.
  • There was a significant shift in the nationality of Lucas Fox Marbella buyers in the first six months of 2019, with the majority of all buyers coming from Spain and the remainder coming from other European countries.
  • 60% of all Lucas Fox Marbella buyers in the first six months of 2019 purchased property as a secondary residence, with the remainder being split between investment and relocation purposes.

Lucas Fox Q1Q22019

  • According to official figures the number of sales transactions in Málaga Province in the first five months of 2019 decreased by 4% over the same period in 2018, averaging 2,681 sales per month. However, the number of sales transactions of new homes showed an increase, of 13%, when comparing sales in the first five months of 2019 to those in the same period in 2018. Sales of new homes represented 20% of the total number of sales in the first five months of 2019, compared to 17% in the first five months of 2018. (INE)

Lucas Fox Q1Q22019

  • The total value of sales transactions in Málaga Province in the first quarter of 2019 grew by 3% over the amount of trading for the same period in 2018, with the total value of sales transactions of new homes increasing by a significant 38%. (Spanish Department of Development)
  • The number of prime market sales transactions (over €900,000) in Málaga Province in the whole of 2018 showed only a slight increase, of 2%, when compared to the prime sales in the whole of 2017. (Spanish Department of Development)
  • The number of foreign buyers in Málaga Province accounted for 28% of the total sales in the first quarter of 2019 compared to 31% in the first quarter of 2018. (Registradores)
  • Average property prices in Málaga Province showed an annual increase of 10% in June 2019, ending the second quarter of 2019 on €2,158 per square metre. Average prices in Benahavís, Estepona and Marbella all increased, ending the second quarter of 2019 on €2,882 per square metre (3% increase), €2,185 per square metre (11% increase) and €2,910 per square metre (10% increase) respectively. (Idealista)

Lucas Fox Q1Q22019

  • Average rental prices in Málaga Province showed an annual increase of 1% in June 2019, ending the second quarter of 2019 on €9.4 per square metre. (Idealista)
  • The number of passengers arriving at Málaga-Costa del Sol airport in the first six months of 2019 showed an annual increase of 6% over passenger arrivals in the same period in 2018. Just over 9.2 million passengers arrived at Málaga-Costa del Sol airport in the first six months of 2019. (Aena)

“In the last few years we’ve seen decreasing international and more national buyers, mainly purchasing as a secondary residence, and there are definitely fewer investors around. Age-wise, buyers tend to be between 30 and 50, noticeably younger than the typical buyer of a decade or so ago. We’re seeing lots of entrepreneurs and business owners who are either looking to relocate or spend part of the year in and around Marbella. Estepona and Benahavís are areas growing in demand. Popular properties tend to be modern, detached villas in gated compounds with good facilities and services near the beach. As there are numerous projects already built along the Costa del Sol competing with each other, buyers want quality and value for money.”

Ira Brankovic
Lucas Fox Marbella

Lucas Fox Ibiza

  • The average price of a property (both offers and completed sales) by Lucas Fox Ibiza in the first six months of 2019 increased substantially, averaging at just over €1.5 million.
  • Foreign buyers accounted for all of Lucas Fox Ibiza sales in the first six months of 2019.
  • All Lucas Fox Ibiza buyers in the first six months of 2019 purchased property for investment purposes.

Lucas Fox Q1Q22019

  • According to official figures the number of sales transactions in the Balearic Islands in the first five months of 2019 decreased by 8% over the same period in 2018, averaging 1,254 sales per month. However, the number of sales transactions of new homes rose very slightly, by 0.7%, when comparing sales in the first five months of 2019 to those in the same period in 2018. Sales of new homes represented 19% of the total number of sales in the first five months of 2019, compared to 18% in the first five months of 2018. (INE)

Lucas Fox Q1Q22019

  • The total value of sales transactions in the Balearic Islands in the first quarter of 2019 decreased by 13% over the amount of trading for the same period in 2018, with the total value of sales transactions of new homes decreasing by 4% and that of resale properties decreasing by 14%, when compared with the total value in the same period in 2018. (Spanish Department of Development)
  • The number of prime market sales transactions (over €900,000) in the Balearic Islands in the whole of 2018 decreased by 15% compared to the prime sales in the whole of 2017. (Spanish Department of Development)
  • The number of foreign buyers in the Balearic Islands accounted for 27% of the total sales in the first quarter of 2019, down from 32% in the first quarter of 2018. (Registradores)
  • Average property prices across the Balearic Islands showed an annual increase of 13% in June 2019, ending the second quarter of 2019 on €3,016 per square metre. Average prices in Ibiza Old Town, Sant Josep de sa Talaia and Santa Eulària des Riu all increased, ending the second quarter of 2019 on €5,318 per square metre (4% increase), €5,106 (4% increase) and €4,754 per square metre (1% increase) respectively. (Idealista)

Lucas Fox Q1Q22019

  • The number of passengers arriving at Ibiza airport in the first six months of 2019 showed a slight annual increase of 1% over passenger arrivals in the same period in 2018. Almost 3.2 million passengers arrived at Ibiza airport in the first six months of 2019. (Aena)

“There has been a decrease in demand for property in Ibiza during the first half of 2019. With prices having consistently risen over the last six to seven years, we believe that a slight market correction is likely to occur in the short-term, although we recognise that long-standing Ibiza supporters are loyal to the island and will continue to want the experience of its very unique and pleasant lifestyle. Buying a property in Ibiza has often been a complex process due to planning issues but there are currently a number of exclusive luxury housing projects underway that will make acquiring a fully legal property much easier.”

Rod Jamieson
Managing Director Lucas Fox

Note the following figures are provisional:

  • INE (from June 2018)
  • Spanish Department of Development (from Q1 2019)

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