Sales prices across Spain appear to have steadied

The latest Spanish property Market reports by Lucas Fox suggest that sales prices across all its Spanish regions where the company operates appear to have steadied and may have bottomed out. Prices in most areas are between 30-40% below their peak in 2007 although in some areas there is still considerable margin between asking price and the final sales price.

For the first time, the company’s Market reports include an analysis of activity on the Maresme Coast, the stretch of coastline between Barcelona city and the Costa Brava, and Sitges, the pretty coastal town just to the south of Barcelona. They also cover the company’s other key areas: Barcelona, the Costa Brava, Marbella, Ibiza and Mallorca.

The Financial Times recently released its top 10 European Cities and Regions of the Future 2014/15”. The report classifies the most attractive cities in terms of generating business opportunities and investment. Topping the list is Barcelona and it also includes Seville, Valencia and Madrid, regions where Lucas Fox has recently launched new offices.

Lucas Fox Market reports overview

• Spain’s prime residential property market is still being driven by international buyers, attracted by the country’s low prices, investment opportunities and lifestyle.
• There are the strongest signs yet that the market is about to reach the bottom, with official figures showing prices decreasing just over 1% overall in 2013 compared to 2012.
• The new ‘Golden Visa’ scheme – which grants automatic residency to non-EU citizens who invest 500 thousand euros or more in Spanish property – has attracted a growing number of residency investors, mainly from the Far East, Middle East and Russia.
• Lucas Fox enjoyed its most successful year to date in 2013, ending the year with the company’s healthiest annual sales revenue since it was founded 9 years ago.

Key regional findings

Barcelona

• Lucas Fox posted its highest number of annual sales ever, indicating a growing demand for quality, prime residential properties in Barcelona
• The majority of prime residential property buyers came from Northern Europe (in particular the UK, France and Switzerland) with strong interest from Russia, China and the Middle East, and small numbers of national buyers coming back into the market

Download the Barcelona Real Estate Market Report Q1 – Q2 2014

Costa Brava

• The company enjoyed its best year of sales since the company’s inception, with clients from the UK, France, Russia and former Soviet countries accounting for the majority of high end sales.
• Property prices continue to be heavily discounted across the market, with average prices having fallen by as much as 30% – 40% since the peak 2007.

Download the Costa Brava Real Estate Market Report Q1 – Q2 2014

Marbella

• Sales prices in the second half of 2013 for luxury properties in Marbella averaged between 4,500 Euros/m2 to just over 6,000 Euros/m2.
• There has been significant growth in interest in prime residential Marbella property amongst Scandinavian, Asian, Middle Eastern and Russian buyers.

Download the Marbella Real Estate Market Report Q1 – Q2 2014

Ibiza

• The Ibiza property market was one of the strongest in Spain during 2013, with a healthy transaction pace compared with the rest of Spain. Lucas Fox completed one of its biggest sales to date in December of last year selling a package of apartments worth €18million to a Middle Eastern investor.
• While the majority of buyers are from Northern Europe and the UK, 2013 saw increasing numbers of buyers from the Middle East and the US, as well as continued strong interest from European buyers. The greatest growth markets for enquiries and property viewings came from the Far East market.

Download the Ibiza Real Estate Market Report Q1 – Q2 2014

Mallorca

• In 2013, Lucas Fox saw a three-fold increase in the number of enquiries and property viewings over 2012 levels. International buyers are most interested in villas, rural estates, vineyards and equestrian properties in close vicinity to the island’s best golf courses, marinas and yacht clubs.
• Palma de Mallorca is giving the strongest signs yet of stabilising prices, ending Q4 2013 on an average of €1,870/m2, down just 85 Euro from average asking prices at the Q4 2012.

Download the Mallorca Real Estate Market Report Q1 – Q2 2014

Maresme

• Second home purchases by international clients accounted for 100% of the company’s sales activity.
• Sales in the second half of 2013 closed at an average of 14% below asking price.

Download the Maresme Real Estate Market Report Q1 – Q2 2014

Sitges

• For the first time since the peak 2007 period, Sitges average property asking prices fell below the Barcelona average, ending the year on €3,116/m2 (compared with €3,183/m2 for Barcelona).
• International buyers are most interested in sea view properties, beachfront villas and first-line mansions in key luxury urban developments.

Download the Sitges Real Estate Market Report Q1 – Q2 2014

Comment & Analysis

Lucas Fox co-founder Alexander Vaughan comments:

“While prices show signs of stabilizing across all our regions, there is still some margin between sellers’ asking prices and buyers’ valuations of a correct purchase price, with sales closing at an average of 15% below asking price but in some cases up to 25%. However, the increase in sales transactions reflects heightened buyer confidence in the Spanish real estate market and a general feeling amongst international investors that the market has bottomed out or is close to doing so”.