British Holidaymakers Spent an Average of €48 Million per Day in Spain Last Year

British Holidaymakers Spent an Average of €48 Million per Day in Spain Last Year

Brits continue to flock to the Costa del sol 

Everyone knows that Brits love heading to Spain when they’re choosing a destination in the sun. It seems the Brits weren’t content with just being the main property investors and tourist group for Spain in 2017, as they were also – sort of – the biggest spenders.

As a collective British holidaymakers were spending an average of €48 million a day in Spain, which works out at around €2 million EACH HOUR. All in all, this figure accounts for 20.1% of all tourist spending in the country in 2017. Tourism spending reached a total of €86.82 billion in Spain, with Brits spending around €17.42 billion of that.

German tourists were barely spending more than Brits pre head, but their overall €12.2 billion spent in Spain puts them below the British. The reason for this was that there were more Brits than Germans in Spain 2017, with around 18.78 million Brits and 11.89 million Germans visiting.

French and Scandinavian tourists threw another €7 billion each into the Spanish economy last year, leading to tourism accounting for 11% of the GDP for the country; meaning tourism is one of the most important industries in Spain. 

The data comes to us from the Ministry of Tourism in Spain and shows just how important it is that Spain continues attracting city breakers, sun-seekers, hikers, golfers, and culture vultures to their shores.

Overall, a total of over 81 million people visited Spain during 2017, representing an annual increase of 8.6%.

Average Spanish Property Values 2.3% Higher in June Compared to Last Year

Average Spanish Property Values 2.3% Higher in June Compared to Last Year

Costa del sol continues to be a great investment 

Data on the price of Spanish property from valuation firm Tinsa shows that the average selling price of property in Spain was 2.3% higher this June compared to June of last year, bringing the streak of monthly increases in house prices to 10 straight months. 

While the data from Tinsa doesn’t go into the actual average property price for each region, it does show the largest increases in prices are found in the coastal regions and major cities. The average property price for regional capitals was 4.2% for example, which is above the national average. While property prices increased an average of 2.4% across the Mediterranean coastline. 

When analysing the average house price across the first half of 2017, Spanish property prices were up 2.8% compared to the first half of 2016, with island property prices seeing the sharpest increase at 7.2%. 

The price increases will no doubt be welcomed because they are gradual and steady. There hasn’t been a price shock, spike, or crash across the past 18 months plus. It’s just been a consistent increase in demand, which means a consistent increase in price. 

These factors are giving economists and property experts alike plenty of encouragement. They can see for themselves an industry with plenty of foreign investment and a growth in domestic interest, as well as increasing confidence from businesses and lenders. 

This is the reason for the 2.4% increase in building licenses across the past year. It’s also why actual sales increased 23% year-on-year as of May, and mortgage approvals increased 10.4% in April – a figure that correlates with the decrease in unemployment as Spanish unemployment has fallen 10.7% across the past year.

Study Finds Average Expat Takes Six Months to Settle In

Study Finds Average Expat Takes Six Months to Settle In

Once settled in to the Spanish life style its hard to leave.

We’d like to start by offering a hearty congratulations to all the people out there that have recently made the choice to leave their home country behind and become an expat. It’s certainly a daunting move, but it could end up being the best decision you’ve ever made.

You shouldn’t worry if you’re having trouble fitting in and settling as soon as you arrive. Everyone goes through the expat life differently, but the process generally follows the same pattern; there’s the initial honeymoon period, then some time spent in doubt and frustration, and then a long period of amusement and bemusement as you take in the differences in culture, before you finally settle in for the long haul; putting down some permanent roots and making new friends.

A recent survey from HSBC known as the HSBC Expat Explorer Survey has assessed that this process takes six months on average.

HSBC polled thousands of expats and found that two-thirds of them took six months to feel like they had truly settled into their new country.

Just under half of expat parents with their children felt it took this long for their children to settle in, seemingly proving the adage that younger people adapt to new surroundings faster.

In the long term, 60% of parents said they feel their children had a higher quality of life abroad. Only 13% of parents feel that expat life was inferior to home life for their children.

Home Ownership Above EU Average in Spain

Home Ownership Above EU Average in Spain

New data from the statistics office of the European Union – Eurostat- - shows that 78% of Spaniards would describe themselves as being homeowners. As a result Spain is ahead of the EU average of 70%, but the number is a little smaller than the number of 2007; when 81% of Spaniards were homeowners.

Buying property in the Costa del Sol and Spain

continues to be very popular

The amount of people owning homes has fallen in UK, France, and Spain following the recession, but the damage has been mitigated in Spain. The UK is getting close to 60% home ownership, which would be the lowest number for a very long time.

It is the former communist countries that are performing the best with home ownership rates in Europe. Over 95% of Romanians and 90% of Croatians own the homes they live in.

Analysts believe that these figures are an indication of how poorly the real estate market is performing in these countries. They point towards Germany – with it’s regulated rental market – where only 51.9% of Germans are homeowners because renting is the norm there.

It looks like the younger Spanish generation, particularly the Millennials, are not all that interested in owning property because they grew up in a culture where owning things has been replaced by leasing cars, renting mobile phones, and even streaming music and television.

However the slightly contracted rates of home ownership in Spain are caused more by the lasting damage of the past two recessions. Millennials found themselves hit the most by the lean years and so they lack both the confidence and the funds to even think about owning property.

This particular anomaly could be changing however following the latest data from the Spanish National Statistics Institute (INE) showing that mortgage approvals continue to increase and that young Spaniards are eager to take their first steps on the property ladder.

Even though there are large upfront costs associated with owning a home it does prove to be more cost-effective than renting a property in Spain. The data from Eurostat also shows that Spaniards who rent a property end up paying around 23% more per month on average than their counterparts who purchase property through an owner-occupier mortgage.

The Average Property Investor in Spain Revealed; A European Father Between 40-50

The Average Property Investor in Spain Revealed; A European Father Between 40-50

Buying property in the Costa del Sol comes

in all shapes, sizes and ages

A recent survey suggests that the typical foreign investor for Spanish property is a man aged 40-50 with a family. The study, carried out by Iberia Real Estate suggests that the most common profile for Spanish investors is indeed a northern European middle-aged father.

Iberia Real Estate recently analysed their data and discovered that the people most interested in investing in Spanish property were fathers aged between 40 and 50 and that they were likely to come from northern European countries such as the UK, Ireland, Germany and the Scandinavian countries. Average-Property-Investor-in-Spain-Between-40-50

The survey also showed that for every ten people who visit Spain two of them seriously consider the idea of purchasing Spanish property; especially in tourist hotspots such as Andalucía, Valencia and Catalonia.

This is great news for the Spanish property sector following the record breaking tourism seen this year. Spanish newspaper El Mundo are predicting that there will be a 30% increase in Spanish property transactionsthis year, which is thanks to a mixture of the resurgent domestic market and foreign investors choosing Spain because of its position as a safe choice.

Many other popular holiday and investment choices across Europe have suffered from terrorism in the past 18 months and as such Spain has found itself taking in more tourists and money as tourists choose Spain over these unsafe destinations.

There is also not much surprise when it comes to the profile of the average property buyer in Spain. Middle-aged men tend to also be the richest demographic of these countries and, with the news that the British, German and Scandinavian economies are recovering it isn’t surprising that the people most likely to invest in Spanish property belong to these groups.

Something else that can’t be overlooked is the excellentSpanish property market. Spain offers a perfect blend of affordability,quality, choice, and convenience. Throw in the Spanish culture, which is not that different from that of northern Europe, the warm climate, the excellent infrastructure, and the healthcare and you have a great place to own property.

Spanish Property Prices Increase at Double the Eurozone Average

Spanish Property Prices Increase at Double the Eurozone Average

Spanish property for sale gives investors a whole lot for their money and the Spanish market as a whole is becoming more stable and attractive each day.

Regardless of Brexit the future is bright the future is Spain

Now the latest data from EU statistics agency Eurostat has shown that property prices across all of the Eurozone have increased on average by around 3% in the last 12 months. Spanish property prices, however, have risen by over double that.

The data from Eurostat shows that the average value of Spanish homes has increased by 6.3% in the year up to the end of the first quarter of 2016. This increase is higher than the increase in almost every other country in the Eurozone.

The Eurostat data would also confirm that property prices have increased now for 8 quarters in a row, with this latest spike of 6.3% being the sharpest rise since the third quarter of 2007. It’s also the biggest average property price increase since 2008 for the entirety of the Eurozone.

The price of property in Spain is still around 32% less than it was during 2008 according to the data. So even though property prices are on the rise, and have been for two years, asking prices are still much lower than they were at the peak of eight years ago.

Many experts are happy with how things look which would suggest that the market is going to slowly correct itself and return to its once former glory through both foreign and domestic demand, banks being sensible about lending, and support from the recovering Spanish economy.

Staying in Eurozone it was Austria who saw the largest increase in property prices in the same amount of time. Property in Austria rose by an average of 13.4% while prices were down 1.2% in Italy and Cyprus.

It’s Official: Med Property Prices are Rising Faster than Spanish Average

It’s Official: Med Property Prices are Rising Faster than Spanish Average

The Mediterranean property prices in Spain have risen by an average of 4.4% over the past year. This is higher than the average for the nation overall.

An analysis of Spain’s property market performed by Tinsa, a real estate appraisal firm, has discovered that the value of homes in and around the Mediterranean resorts was rising faster than the average for the rest of the country.

Buying property in Costa del Sol is clearly on the up.

During the first quarter of the year property prices increased by around 4.4% on average in the Mediterranean when compared to the same period of time from last year.

This is over double the national average for the rest of the country. On average property prices have risen by 1.9%. In the more metropolitan regions there has actually been negligible change over the past year. The price trend is usually quite positive though. Prices seem to be rising month by month. They rose 0.8% between March and April after a rise of 2.1% between February and March.

Property prices on the Mediterranean also increased by 2.7% during the first quarter of 2016, compared to the last quarter of 2015. This is further evidence that the Spanish property market is stabilising while keeping property prices affordable.

The data from Tinsa also compared the property prices of today to the peak from 2007 and showed that property on the Costa del Sol is around 46% cheaper on average now compared to 2007. This represents an incredible “correction” of the market and is the most that prices of fallen over this period of time in any region.

As properties in the Costa del Sol are currently valued at higher than the national average this data would also seem to confirm suggestions that many of the properties on the market during the boom of 2007 were overpriced to some degree.

The market is far more sensible today, especially on the Costa del Sol. All of the things that made the area so appealing in the first place, such as the variety of properties for sale, the excellent infrastructure and location of the region, the climate, the healthy amount of expat-friendly locals with their rich culture, and the overall landscape of the area, are still there. Only this time the property is priced fairer and much steadier.

Any Brit looking to find an affordable property in Spain should take a look at the southern tip of the country to the areas with more affordable property prices. Take a look at areas such as Marbella and Málaga and see how property should be fairly priced.