Lucas Fox has collaborated with associates Savills Global Residential and Savills Aguirre Newman to create an in-depth insight into the Spanish Residential Market in 2019 and beyond.
Their findings suggest that, in a global context, Spain’s prime city markets offer value for money and higher growth potential than other key world cities. Madrid is the most expensive for prime property, with an average value of €7,000 per square metre. This is 23.1% lower than Berlin, 60.5% lower than London and 84.6% lower than Hong Kong.
The report’s key findings are:
- Property prices across the country increased 7% over the past year.
- Prime rental yields in Barcelona outperform many European top-tier cities.
- The construction of new homes is picking up as developers return to the market. A total of 78,000 new dwellings were granted permits in Spain in 2018, an increase from 23.1% from 2017.
A Brighter Future for Spain’s Residential Market
Spain is the second most-visited country in the world after France. From its wonderful food and climate to its vibrant cities, culture and history, there are many reasons why people move to Spain for a more permanent stake in the country.
The hardships faced by Spain following the Global Financial Crisis are now in the past. The future looks bright as the country’s property market registers increasing numbers of transactions, steadily growing prices and more construction.
Following nearly a decade when practically no residential homes were built, construction activity is increasing. This is mainly in the key cities, but also across the country. This is forecast to increase as more residential permits are granted.
There is growing interest from international buyers, especially from countries in Latin America that share cultural and historical links with Spain.
In a global context, Spain’s prime city markets offer value for money and more growth potential than other world cities.
The country’s status as a top visitor destination, coupled with the high-quality life and low cost of living it offers, will continue to attract buyers and underpins Spain’s lasting appeal.
To find out more, read the full report here.