2017 Sees Nine-Year High in Spanish Property Sales

Southern Spain is truly back.. 

2017 Sees Nine-Year High in Spanish Property Sales

The National Institute of Statistics in Spain (INE) has published the latest provisional residential property sales figures for 2017 which show last year saw a nine-year high for total property transactions. 

This means that 2017 has become the most significant year for the Spanish property market since 2008, which was when the bubble burst and the crash began, leaving the real estate industry in a state that it has taken years to recover from.

Signs have been suggesting that the property market in Spain has been recovering since 2013, but this latest data marks the first time that the market has reached pre-crash conditions. Property sales figures increased across all 17 autonomous regions of Spain, and the 14.6% nationwide increase over 2016 sales figures left the total figure at 464,423 homes sold in 2017. 

This is in stark contrast to the 312,000 homes changing hands in Spain during 2012, which was when sales started bottoming out at the height of the recession. 2017 ended on a positive note as well, as the 32,211 transactions recorded for last December was an increase of 9.2% over December of 2016. It’s also around twice the notary data published recently that estimated sales would increase 4.5% in December. 

The fastest-growing region of Spain last year was Castilla-La Mancha, which saw an impressive increase in property sales of 24.7% compared to 2016. This is an area that doesn’t usually bring in foreign buyers, suggesting that a large part of the uptick in the Spanish real estate sector is caused by domestic recovery. 

Foreign buyers still remain an important part of Spanish real estate though, accounting for around 15% of home buying activity in 2017. Of this, Brits were responsible for around a fifth of all sales to foreign investors.

British Visitors Numbers for Spain up 7.8% So Far in 2017

British Visitors Numbers for Spain up 7.8%  in 2017

Costa Del Sol continues to offer great value and

a wonderful holiday destination

Spain has an enduring appeal that continues because it offers all the simple things but it does it so much better than anywhere else in the world.

The beaches are kept clean, accessible and varied, as well as being served by plenty of restaurants, bars, hotels, and playgrounds; the Spanish climate is pleasant for most of the year; accommodations range from affordable to five-star expensive resorts; the flights to the country are cheap and fly regularly; the cities are historic and modern at once, not to mention beautiful; and the people are incredibly welcoming and friendly.

It’s hardly a surprise that Spain regularly ranks among the top three most-visited destinations each year. It seems that Spain may become THE most popular destination of 2017 however, at least according official tourism data from the Spanish National Statistics Institute (INE).

Spain welcomed 57 million tourists up to – and including – August of this year; marking an annual increase of 9.9% compared to last year. Around 10.4 million people – which is about a quarter of the population of Spain – visited the country during August. The figure was a 4% increase compared to August 2016, suggesting that the popularity of Spain continues to grow.

The story is the same for British visitors in particular. There have been some fears since the Brexit that British visitors would prefer to stay in the UK instead of travelling overseas where they wouldn’t get as much for their money. It seems that the 13.2 million Brits heading to Spain up to August would prove those fears wrong.

The amount of Brits visiting Spain has increased 7.8% in 2017 compared to 2016, and there have been noticeable increases in tourists coming in from other countries. Some 8.2 million Germans visited Spain, up 7.2% from last year, with 8.4 million French tourists flocking the country; an increase of 1.8%.

The region of Andalucía, which is where Costa del Sol islocated, saw the highest increase in foreign tourists, increasing 5% year last year. Andalucía saw 1.4 million overseas visitors in August alone.

Spain Welcomes Record Numbers of Tourists and Foreign Property Activity in First Half of 2017

Spain Welcomes Record Numbers of Tourists and Foreign Property Activity in First Half of 2017

Spain has had another record breaking summer 

The Spanish property market and tourism industry is performing as well as ever, according to the latest data from Jones Lang LaSalle (JLL) and the National Statistics Institute (INE). The data shows that several records were broken during the first half of 2017. 

Foreign investment in Spanish properties was pushed up to €888 million during the first half of the year, much higher than the amount spent during the first half of 2016; a paltry (by comparison) €330 million. 

JLL believe that overseas investors will snap up over €1 billion in Spanish property during 2017, which would make 2017 the eight year in a row where foreign investment in Spanish real estate has increased. 

Spain has been moving at full speed as far as tourism goes for several years now, but the latest data from the INE shows some 36.3 million tourists visited Spain during the first half of the year – which is the time BEFORE the busy summer months of July and August. 

This puts Spain in the position to smash through records set last year, and could mean over 80 million tourists visit the country in 2017, which would push Spain into the top spot for global tourism. 

There was another trend evident in the data; the connection between foreign property ownership and tourism. Around 8.5% of the tourists staying in Spain in 2017 did so in their own holiday accommodations; properties that had been purchased to be holidayed in. This marks the highest this figure has ever been, and it’s only going to increase.

It’s been a decade since the real estate crisis happened but now the Spanish property market appears to be thriving. People see the benefits of owning a Spanish property such as being able to better enjoy holidays and to relocate entirely. There’s no doubt Spain is set to see another record breaking year for international investment.

IMF Predicts Greater Economic Improvement for Spain in 2017

Spain has to be the best place to live in the EU and has so much 

going for it.

The International Monetary Fund (IMF) upgraded the economic outlook for Spain this week based on the explosion of the tourism sector, strong export market, and growing demand from domestic consumers.

The Spanish economy is now expected to grow by 3.1% according to the IMF. It’s last forecast from April suggested the Spanish economy would grow by 2.6% in 2017.

The upgrade means that Spain is one of the leaders of the EU when it comes to economic success and growing GDP. The IMF added that it was impossible to rule out the idea that Spain might be upgraded again later in the year, especially if more records are broken in the tourism sector this year.

It’s more than just the perpetual attraction of the country for holidaymakers that is boosting the Spanish economy. The IMF were also keen to praise how the government’s reforms in the economy and labour market created momentum, stressing the growing consumer confidence and demand. Altogether, it could create a virtuous circle where money is spent, jobs are created, and the economy expands.

While the government should be trying harder to tackle the problems of youth unemployment and wage suppression, the performance of the Spanish export sector shows the quality of the standards and the competitive nature of Spanish industry according to the IMF.

Spanish GDP rose by 3.2% last year, with growth of over 2.5% in 2015. When it comes to 2018, economists believe that the Spanish economy will continue to grow, especially as the construction and property sectors continue to grow and offer their support.

2017 Welcomes Four-Year-High for Spanish Property Sales in January

2017 Welcomes Four-Year-High for Spanish Property Sales in January

Spanish property continues to be buoyant

Not many people consider January to be the ideal time to do a bit of property hunting. It may be the month of January sales, but there’s a big difference between the high street and the Spanish property market.

With that said, official data from property registrars in Spain has shown 38,457 homes were sold during January in Spain, making it the single best January since 2013 and an overall increase of 18.1% compared to January of 2016.

The January property sales of this year are so strong that, if it wasn’t for the artificially created rush for demand of January 2013 (caused by upcoming changes to tax legislation) then it would be around a decade since the figures were this high.

On the regional level, the markets in Cantabria and the Balearics were the homes of the highest year-on-year growth, with growths of 45.1% and 40.5% respectively. An interesting statistic is that there was actually less demand for property in 2016 for the Canary Islands.

With such a strong start to the year, Spain is set to deliver a powerful performance on the property front during 2017. The figures from January are just one part of a larger trend showing how the 410,000 home sold in Spain over the past 12 months represent a stunning 15.6% increase over the past 12 months, with even more growth forecast for the next 12 months.

2016 Saw Increase in Number of British Holidaymakers Heading to Spain, and More are Expected in 2017

2016 Saw Increase in Number of British Holidaymakers Heading to Spain, and More are Expected in 2017

It looks like the relationship between Brits and Spain can survive just about anything; from economic crashes and the f

Spain continues to be one of the most visited

country's in the world

allying pound, to the TV show Benidorm and the Brexit.

The strength of the bond was shown in 2016, as the official data from travel market analysts GfK proves that just under 18 million Brits headed to Spain for their holiday last year. Even though this figure is a record breaking number, it’s expected the record could be broken as early as this year. GfK are reporting that there are already 16% more Brits making early summer holiday bookings compared to last year.

There are a number of reasons behind the never-ending demand; Spain has much warmer and settled weather than the UK; it has cheaper leisure options including food and drink; accommodation is cheaper in Spain; and the Spanish property market is much better value for money than the British one.

There are also some more abstract reasons for this love affair. Success begets success, and it can feel like stepping foot on a Spanish runway for the first time ever is almost a traditional thing for Brits to do. While Brits “might” visit countries such as France, Italy, and the US, Spain is one of those countries that they “must” visit.

Spain has also built up a reputation as being a bit of a safe haven from the terrorism problems found in rival nations in the Mediterranean such as Tunisia, Turkey, and Egypt. This has made the country much more appealing for tourists around the world; particularly the Brits.

The VC of Tourism in the Canary Islands Cristóbal de la Rosa spoke about being pleased with the figures. It was expected that numbers could fall following the Brexit and the drop in value for the pound. However, figures have only risen. There have been some uncertainties, but all they did was strengthen the British need to visit Spain and enjoy a holiday in the country.

Study Finds Costa del Sol Holiday Costs to Fall in 2017

Study Finds Costa del Sol Holiday Costs to Fall in 2017

The demand for the Costa del Sol continues

even if prices drop slightly

The latest Post Office Worldwide Holiday Costs Barometer suggests that the average price on a basket of “holiday goods” will fall by around 3% in the Costa del Sol during 2017. This annual Barometer looks at the average prices of holiday essentials like sunscreen, beer, wine, dining out, ice cream, and toiletries in 44 of the most popular tourist destinations in the world.

2017 is going to see the main resorts of the Costa del Sol be a little cheaper compared to last year, meaning that holidaymakers will be able to stretch their euros and pounds a little further.

It’s expected that the cheapest destination in 2017 will be Algarve in Portugal; where it will only cost you £33.36 to pick up a basket of these staple goods. This is a price drop of £4 compared to last year.

A basket of holiday goods in the Costa del Sol will cost £38.79, putting Spain in third place behind Sunny Beach in Bulgaria at £33.53. There aren’t any other destinations below this £40 threshold. In fact, the fourth cheapest resort – Marmaris in Turkey – could cost up to £49.74 for a basket of holiday goods.

Andrew Brown of the Post Office Travel Money said that holidaymakers can’t do much about the value of the sterling, but they can still do their homework and travel to places where the costs are low on things such as meals and drinks.

Europe is going to be one of the best places for value this year as nine of the ten cheapest destinations can be found in the continent. The Post Office also found that local prices fell in half of the European cities and resorts surveyed; further increasing the value of European destinations.

Spanish Tourism Set to Grow 3.2% in 2017

Spanish Tourism Set to Grow 3.2% in 2017

Tourist smash all records and looks to continue the trend

Spanish tourism grew by 4.9% in 2016, and it’s expected to grow another 3.2% in 2017 according to the latest data from Exceltur; a tourism promotion group.

Exceltur is estimating that over 75.4 million tourists headed to Spain last year thanks to a combination of factors, including the appeal of Spain and the professional tourism industry of the culture, created the perfect storm.

It’s expected that things won’t change much this year either, except that the growth won’t be as rapid as it was last year. Exceltur suggests there are a few reasons this is the case, including the potential slide of the pound against the euro, which will deter British travellers from leaving the country.

Even so, the country is still yet to see the impact of Brexit. It’s now unlikely to really change tourism numbers in Spain much. Other factors worked well for Spain last year; the main factor was the rise of terrorism in other Mediterranean countries. With luck this won’t be such a big factor this year, but no one can really predict this.

Extra stability will be provided by the settled Spanish government, which will contribute to the idea that a stable country is one worth visiting.

Tourism was responsible for 11% of Spanish GDP last year, as over 80,000 jobs were created in the tourism sector during 2016. The experts add that this year in Spain could see similar numbers.

The Top Three Trends Shaping Spain in 2017

The Top Three Trends Shaping Spain in 2017

Spain is breaking all records

The new year is here and we’re officially living in 2017. Given the way that 2016 ended you wouldn’t be blamed for wondering what misery awaits us in 2017. While things aren’t looking too good for many places there’s a lot to be hopeful for in Spain.

Of course Spain went through some pretty tough times a few years ago, with things slowly coming back together since 2013. It all lead up to the record breaking year that was 2016 in terms of tourism and job creation, low cost of living and with strong metrics seen elsewhere.

All of which suggests 2017 is going to be just as good with many experts re-assessing their predictions and calling Spain one of the shining stars of Europe.

Here are the top three trends shaping Spain in 20117.

A Rise in GDP

The Gross Domestic Product (GDP) of Spain grew by just over 3% in 2016, and it’s expected to grow another 3% in 2017. If you don’t feel that 3% is all that much, then keep in mind that if the Spanish GDP were to grow 3% it would make Spain one of the top 5 economic performers in Europe; outperforming even Germany and France. The rise in GDP leads to a rise in job creation as Spain had their lowest unemployment rate since 2009 in 2016 with unemployment kept below 19%.

More Homes and Hotels

Around 10% of the GDP for Spain last year came from construction. If the GDP continues to grow then it’s reasonable to assume that construction will grow with it. While the country is likely never going to repeat the home development peak of 2007, where some million homes were built, it’s being predicted by experts that Spain could welcome some 400,000 new homes per year, with around 200,000 expected to be built in 2017. In terms of commercial real estate CBRE are predicting that over €10 billion will be spent on developing new offices, hotels, and resorts across Spain this year.

More Record Breaking Tourism Numbers

We don’t have the numbers for how 2016 ended just yet, but everything is indicating that it could very well have been the best year ever for tourism with an estimated 75 million tourists flocking to the country in 2016. Not only is this a new record, but it would also make Spain the most visited country in the world. It’s not hard to see why people come to Spain; not only is there sun, sea, sand, and sangria, but Spain is also affordable, accessible, and varied. It has also managed to stay relatively safe compared to countries such as France, Turkey, Egypt and Tunisia. These trends are expected to continue into 2017 as the Confederation of Spanish Travel Agencies (CEAV) are predicting that Spain could see over 80 million tourists in 2017, with the numbers spread more evenly across 2017 than 2016. If you’re planning on staying in a perennially popular destination such as the Costa del Sol this year  then you should definitely book early!

Leading Spanish Bank Predicts Property Market Will Have Strong 2017

Leading Spanish Bank Predicts Property Market Will Have Strong 2017

The analytical arm of the Spanish bank BBVA; BBVA Research, is predicting that property transactions in Spain will go up by 6.5% in 2017. This increase in sales will be coupled with a 3.5% average price increase.

2017 continues to look strong for buying and

selling property in the Costa del Sol and Spain

Spain is currently going through a lot of uncertainty right now so many would appreciate this positive outlook. One big uncertainty facing Spain right now is just who will be running the country as it enters 2017, along with the whole Brexit situation.

However the analysts at BBVA believe that, in the medium-term, the Spanish property sector will perform how the economy is; which would mean that there will be sensible and stable growth. The economic growth in Spain is currently among the best in the entire Eurozone so it will be interesting to see if the property sector follows suit.

According to estimates from the bank it’s expected that around 475,000 home transactions are going to take place next year as both domestic and foreign demand for property is on the up. Foreign interest is becoming more diverse as more Scandinavians, Americans, and Chinese look to scoop up a home.

As the confidence is building the actual homes them selves continue to be built. It’s also expected that around 70,000 new building licenses are going to be issued in 2017, which is a 40% increase on last year.

A property price increase of 3.5% would mean that the price of the average Spanish home is back where it was in 2004. This would mean that prices would be back to their pre-boom levels, but luckily very few people are predicting that Spain will experience the same explosion of growth witnessed in 2005 that led to the bubble bursting as the market was flooded by consumers with more credit than sense.

The growth is expected to be more sober this time around as interest rates are kept low and the economy is expanding within manageable levels. It’s expected by the BBVA that some 800,000 new jobs will be creatednext year in Spain, which is just the shot in the arm the country needs to stay the course of recovery.