Growing demand for Golden Visas boosts new homes sales in Spain – Lucas Fox

Sales increase by 85% across the Lucas Fox group in the first half 2019, according to the company’s latest analysis.

Lucas Fox has registered its highest ever number of transactions for new homes, according to its latest Market Reports for the first two quarters of 2019.

There were almost five times as many new homes sales across the group compared to the same period last year, representing 45% of all the company’s sales in comparison to 17% in the first half of 2018.

The biggest rise was seen in Barcelona, where the number of completed new homes sales in the first half of 2019 was just over seven times greater than the number in the same period in 2018. New homes sales in the Catalan capital represented 65% of all Lucas Fox Barcelona sales, an increase on the proportion in the first half of 2018 when new homes sales in Barcelona accounted for 31% of all Barcelona sales. The average price of a new home sold in Barcelona was €1,078,601, compared to €850,840 in the first six months of 2018, an increase of 27%.

Sales of turnkey homes to foreigners in Barcelona were dominated by Middle Eastern buyers who represented 29% of new homes sales in the first half of 2019. 30% of new homes sales were by national buyers, up from 25% in the same period in 2018.

Elsewhere new homes sales for Lucas Fox were strong in Marbella where they represented 60% of sales, Sitges (43%) and Valencia (25%).

Lucas Fox’s Sitges office has had an encouraging first half of 2019

“It has been an exceptionally encouraging first half of the year for our New Developments division,” comments Joanna Papis, Lucas Fox Head of New Developments. “Many construction projects in Barcelona have finally finished and we’ve seen a big rise in the number of completed sales in the city as a consequence.  The majority of new homes sales in Barcelona were for properties in the Eixample district in the city centre and the beachfront areas of Poble Nou and Diagonal Mar, areas consistently popular among foreign buyers. The majority of these sales were to obtain the Golden Visa, especially for our Middle Eastern clients.”

Overall, the volume of transactions across the Lucas Fox group 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, driven mainly by the completion of these new development projects in the first half of the year. Lucas Fox’s Catalonia offices saw transactions in the first half of the year rise by 150% when compared to the same period in 2018 and the value by 132%. The average price of a sold property across the seven offices located in the Catalan region was €868,087.

Foreign buyers accounted for 60% of all Lucas Fox sales, with the majority coming from the Middle East, the United Kingdom, the United States and Latin America. A quarter of all Lucas Fox buyers purchased property as a primary residence with those buying as a secondary residence or investment property each accounting for a third of all sales.

According to Spain’s National Institute of Statistics (INE), new homes sales in the first half of 2019 across Spain rose by 7% when compared to the same period in 2018, with an average of 8,215 sales per month.

Idealista showed that property prices across Spain have continued to increase year-on-year, recording an annual rise of 6% in June 2019. Prices rose significantly in some of Spain’s secondary cities such as Girona (20%), Cádiz (11%) and Málaga (8%).

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