Lucas Fox Spanish Real Estate Market Analysis Q1-Q3 2019: Tarragona

It has been a fairly turbulent few months politically for Spain and the recent elections were once again inconclusive with no overall majority for Pedro Sánchez and his socialist party (PSOE). However they have reached a preliminary coalition deal with the anti-austerity Podemos party to try to form a government. This should bring greater stability to the country, which is good news for the country’s property market.

Read our full analysis of Spain’s property market here

Tarragona Province

Volume of Sales – Tarragona Province

Compared to the second quarter of 2014 the number of transactions in Tarragona Province in the second quarter of 2019 has risen from 2.076 to 3,593, an increase of 73%. However, the number of sales is still 39% below the second quarter of 2007 (8,246 sales), around the peak of Spanish sales transactions. (Ministry of Development, Spain)

Year-on-year the number of sales transactions increased by 2% in the second quarter of 2019. However, when compared to the first quarter of 2019 sales have risen by 24%. (Ministry of Development, Spain)

New Homes Sales – Tarragona Province

Sales of new homes in Tarragona Province represented 4% of the total number of sales in the second quarter of 2019, a smaller proportion than in the second quarter of 2018 (7%). The proportion has reduced significantly since the second quarter of 2007 when 46% of the total sales were for new homes. (Ministry of Development, Spain).

Value of Sales – Tarragona Province

The total value of sales transactions in Tarragona Province in the second quarter of 2019 decreased by 2% over the amount of trading in the same period in 2018, but when compared to the first quarter of 2019 it rose by 25%. Compared to the second quarter of 2014 the total value of sales transactions has increased by 68% but it is still 65% below that of the same quarter of 2007. (Ministry of Development, Spain)

Tarragona City

Volume of Sales – Tarragona City

The number of sales transactions in Tarragona City in the second quarter of 2019 (448 sales) decreased by 3% compared to the same quarter in 2018 (461 sales). However, sales have increased by 15% when compared to the first quarter of 2019 (391 sales). Compared to the second quarter of 2014 (230 sales) the number of transactions has almost double but it is still 27% below the second quarter of 2007 (617 sales). (Ministry of Development, Spain)

New Homes Sales – Tarragona City

Sales of new homes in Tarragona City represented 6% of the total number of sales in the second quarter of 2019, a similar proportion as in the second quarter of 2018. The proportion is still less than in the second quarter of 2007 when 29% of the total sales were for new homes. (Ministry of Development, Spain)

Average Sales Prices – Tarragona City

Average property prices in Tarragona City showed an annual increase of 1.4% in September 2019, ending the month on €1,720 per square metre. Prices in Tarragona City are yet to see the huge increases seen in some other regions of Catalonia, having risen by just 3.4% since September 2014. (Idealista, resale property prices)

Average Rental Prices – Tarragona City

Average rental prices in Tarragona showed an annual increase of 9.5% in September 2019, ending the month on €8.3 per square metre. (Idealista)

Tourism & Foreign Buyers, Tarragona

The number of passengers arriving at Reus airport in the first nine months of 2019 was just over 940,000, an annual increase of 1.4% over passenger arrivals in the same period in 2018. (Aena)

International tourism in Catalonia in the first eight months of 2019 increased by 0.7% over the same period in 2018. Catalonia hosted just over 13.6 million international tourists in this period. (INE)

Foreign buyers in Tarragona Province accounted for 14% of the total sales in the second quarter of 2019, a slightly smaller proportion than in the second quarter of 2018 (15%), but higher than the proportion in 2012 when they accounted for 8% of all buyers. (Spanish Land Registry)

Lucas Fox Tarragona Buyer Profile

Note the following figures are provisional:

• INE (Tourism) (from January 2019)
• Ministry of Development, Spain (from Q2 2019)

View Lucas Fox Spanish Real Estate Market Analysis Q1-Q3 2019: Spain

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