Demand for New Spanish Homes Increases 32.5% in a Year

Demand for New Spanish Homes Increases 32.5% in a Year

Buying off plan property is back in demand as each

new development sells out very quickly

While resale homes are making up the bulk of the Spanish property mark

et, there’s been an improvement in the new build sector across recent months. The data from the Ministry of Development shows that, for the first eleven months of last year, there were 32.5% more requests for building permits than during this time period in 2015.

There were a total of over 59,999 building permits granted in the first 11 months of 2016, which is the most granted in this amount of time for over five years. It is a massive increase of 72% compared to the same time period in 2014; just three years ago.

5,934 permits were granted in November alone – an increase of 25% over 2015 and the most permits granted in a November since 2010.

The data would suggest that the recovery of the Spanish housing market is pretty balanced; positive figures are being posted by both the resale and new build sectors.

What is most encouraging is the sustainable, stable growth of the new build sector. Before the market crashed in 2008, Spanish property was being constructed at lightning speeds. In just 2006, some 900,000 new homes received building permission.

It was obvious that the rate of development was unsustainable. It took the country over half a decade to work through the incomplete, unsold, or just unsellable homes. These days things are looking much better. There’s barely any oversupply left at all in the most popular areas of Spain such as the Costa Brava, Costa del Sol, and the Balearic and Canary Islands.

Spain Reduces Amount of Unsold Homes by 300,000

Spain Reduces Amount of Unsold Homes by 300,000

The Costa del Sol continues its recovery

While there are some areas of Spain that are having trouble attracting buyers, some areas of the country remain as popular as ever; such as the Costa del Sol. Around half of the unsold properties that were constructed before the crash of 2008 have now been sold according to the latest data from the Caixa Bank Group.

The analysis looked at the bulk of homes that were long thought to be unsellable due to their location, lack of infrastructure, and low demand. It showed that of the 650,000 properties that were on the market in 2009, only 388,000 were still unsold by the end of 2016.

This was representative of a drop of 20% in just one year, with similar results expected in 2017. Caixa are predicting that there will be less than 315,000 of these properties on the market by the end of 2017.

Some areas, such as Costa Blanca and the Costa del Sol, are already running out of such unsellable properties. The areas that still have the most amount of these homes including La Rioja, Castille-La Mancha, and Valencia; the inland areas that don’t have as much demand.

To contrast this the problem doesn’t really exist in areas such as the Canaries and the Balearics, thanks in part to the popularity of the regions and the strict building controls.

The bank did further analysis that suggested property transactions would increase 12% in 2017; an increase on the 450,000 home sales recorded in 2016.

Caixa are also expecting that the average property price will increase 4.3% in 2017. Also on the increase is the number of foreign buyers, but it’s expected that British buyers will be a less dominant force with sales spread out between British, German, French and Scandinavian buyers.

It’s also expected the country, in particular Barcelona and the Costa del Sol, will see an increase in demand from Chinese, American and Russian investors.

70% of Homes sold in Malaga Between January and July Sold to Foreign Buyers

 70% of Homes sold in Malaga Between January and July Sold to Foreign Buyers

Costa del Sol will always be in demand due to

location, lifestyle and the weather

People have known for a long time that the Costa del Sol has always been the main interest for foreign homebuyers and tourists looking at Spain. It’s the home of golden beaches, various resorts that fit all budgets and tastes, and the best and most affordable homes across Spain. Overall the Costa del Sol stands above, and beats out, the competition.

The providence of Malaga encompasses some of the biggest regions in Spain including the Costa del Sol, Nerja, Marbella, Estepona, and Malaga itself – which stands as a beautiful atmospheric city filled with culture and ancient wonder. There are also inland areas to Malaga so it’s no wonder that foreigners are always looking towards it.

Data released this week shows just how popular the property markets in Malaga truly are. The Notarie’s Assocation of Spain say that 70% of all the homes bought in Malaga between January and July were sold to foreign buyers.

To put it into actual numbers this accounts for 4,978 property transactions by non-Spaniards; an increase of 16.9% over the same time period in 2015. Across the whole of Andalucía, which includes Seville, Cádiz, Seville, and other provinces, there was an increase of 18.9% in foreign buyers in 12 months.

When taking domestic buyers into account there was a 10.1% increase in overall property sales in Andalucía between January and July compared to 2015. House prices were on the rise as well; an increase of 2.6% which is double the 1.3% national average.

Brits were responsible for a quarter all of the homes sold to foreign buyers in the Costa del Sol, further showcasing the love affair that Brits have with the Costa del Sol and Spain as a whole.

Almost 400,000 Homes Sold in Spain Across 12 Months to September

Almost 400,000 Homes Sold in Spain Across 12 Months to September

Data from the Office of National Statistics in Spain shows that some 395,000 homes were sold in Spain across the 12 months to September.

Spain is back with more and more homes being sold.

This number indicates a year-on-year increase of 13.2% and is the most homes sold across a 12 year period since the 12 months leading to July 2011.

This 400,000 figure might be less than the 775,000 homes that were sold during 2007, it is still a strong sign of the Spanish property market is becoming more active and healthy. It is also a continuation of the growth period that has seen price increases in 24 out of the past 25 months.

September 2016 saw 34,931 homes change hands, which is an increase of 13% over September 2015. When looked at as a whole the year of 2016 has seen some 311,000 properties sold so far; an indication that 2016 could see the most homes sold in a single year since 2008; which was the last year before the Spanish economy went into a recession following the global credit crunch.

Andalucía saw over 100 homes sold per 100,000 thousand residents, which would suggest that there is a split between the numbers of local, domestic, and international buyers.

This has always been the way things work in Andalucía. The Andalucían property market is supported by the sales across the Costa del Sol; particularly the sales of the luxury homes that are made available to wealthy buyers through and around Marbella.

40% of Spanish Homes Running Pay TV

40% of Spanish Homes Running Pay TV

Most house holds are now paying for TV services

Spain is definitely feeling the success of streaming platforms like Amazon Fire TV and Netflix. The latest research shows almost 40% of households in Spain have pay-to-view TV in some form or another.

This data does include the more traditional satellite and cable services including Sky and Canal+, but it does show how TV habits are changing in Spain, although going to the Cinema is still very popular.

People would never really suggest that terrestrial Spanish TV was any good, so it’s likely not going to become a surprise that the Spaniards, who were once considered to be the biggest illegal downloaders, have grabbed the opportunity to get their hands on something better than they would through regular Spanish TV.

People are also more willing to pay for it than ever. A survey conducted by Onsti, the Spanish Telecommunications Observatory, Spanish homes are spending an average of €22.30 on Pay TV. This suggests that people are paying for more than one streaming platform given that Netflix costs less than €10. They could also be purchasing the more expensive satellite and cable packages that offer more content.

The data from the survey shows that around a third of Spanish homes take advantage of a comprehensive package including broadband internet, TV, fixed landline and mobile phones. This also suggest that the Spanish are getting in line with their cousins in northern Europe when it comes to going digital.

The homes that are on these comprehensive packages spend an average of €68.20 for them, which is pretty good value for money considering what you get included in these packages.

Netflix opened their doors to Spain last year and they have become quite a success in the country, just as it did in all the other European markets it entered.

Spanish Homes Sold at Highest Volume in Five Years

Spanish Homes Sold at Highest Volume in Five Years

The Economic Ministry published new figures last week that show the amount of Spanish homes sold in June was higher than for the past five years.

Spain is defiantly back and investor are buying

The data shows that some 36,856 property transactions were registered in Spain during June. This was a 19.4% increase on June of last year and is the most homes sold in a single month since August of 2010. The figure also shows that there are 100 sales per 100,000 inhabitants of purchasing age; a threshold that has always been seen as the mark of a strong property sector.

Sales were on the up in 15 of the 17 autonomous communities of Spain during the month. The only communities that failed to report an increase were Navarra and La Rioja. June also can’t be considered a blip on the radar. For the year-to-date the average number of monthly transactions has increased by 16.4% compared to last year. Even taking the trend to the full past 12 months shows an encouraging increase of 14.7%.

The Spanish property market hasn’t seen such an increase in activity since August of 2011. It’s especially encouraging given that Spain is recovering from one of the worst recessions ever seen. Now though the Spanish economy is recovering and GDP is set to grow by over 2.7% this year and next year. Spain is also seeing a bumper summer season that is bound to brighten up those dark post-recession days and make them a thing of the past.

More encouraging data about the Spanish recovery and popularity came from the Airports Council International Europe (ACIS) this week. They found that the Malaga and Alicante airports are two of the fastest growing airports in Europe, seeing an increase in passenger numbers for the first half of 2016 of 14.6% and 16.1% respectively.

Elias Bendodo, the president of Turismo Costa del Sol said that the figures confirm what a great year the Costa is experiencing. Spain is seeing record numbers of tourists and are growing in the European market as a whole. If the first half of 2016 is anything to go by it looks the 2016 will be a record year for tourism in Spain.

Number of Spanish Homes Sold in First Six Months of 2016 Highest Since 2010

 Number of Spanish Homes Sold in First Six Months of 2016 Highest Since 2010

Thanks to a combination of low interest rates, affordable property prices, solid mortgages and a strong economy, Spanish real estate has never looked so attractive.

Spanish property sales continue there upward trend

The Spanish daily El País are reporting that the number of Spanish homes sold in the first six months of 2016 is the highest it’s been since 2010.

June saw a total of 36,856 real estate transactions across all of Spain and it looks like the summer months are going to see the trend from April, a month where sales growth year-to-year topped 19%, continue.

Growth was up 19.5% in June compared to June 2015, which also marks a three-year high for June. During the first six months of 2016 around 207,593 houses have been sold in Spain, according to the Economy Ministry. Most of the real estate activity has come from the five biggest cities of Spain; Madrid, Barcelona, Valencia, Alicante and Málaga. Málaga shouldn’t come as a surprise as they have the ever-popular Costa del Sol nearby.

VIVA already reported that foreign investment is responsible for a lot of this activity with real estate and construction making up a third of the €22 billion spent in Spain by foreign nationals.

The Institute of National Statistics did further analysis that showed the demand is increasing for luxury properties in Spain – something the Costa del Sol has in spades – as the economic recovery of the country is beginning to mirror the recovery being experienced by much of the western world.

Research undertaken by Bankinter suggests that the demand is only going to continue to increase. They released a report last week forecasting that Spain will see over 480,000 more property transactions in 2016, which would be a 10% increase over 2015. The bank also predicted that property prices will increase between 3-5% annually.

Experts are in agreement that the low interest rates are doing more than just encouraging spending. They are also making property investments in the Costa del Sol and Spain more attractive than regular savings bonds. All of this should lead to a strong 2017 and beyond for the real estate industry and Spain as a whole.

Marbella Homes Drawing Attention From Foreign Buyers

Marbella Homes Drawing Attention From Foreign Buyers

Everything about Marbella, from the beauty and atmosphere to the glamour and culture, has always been a hit with both foreign and domestic visitors.

Costa del Sol Property market continues to rise

as demand is going pace

Marbella just wouldn’t be the same without all of this foreign interest. From the birth of the resort town in 1950, when it was just a humble little fishing village, to becoming the home away from home of the rich and famous, Marbella has always seemed more international than it has Spanish.

So no one is going to be surprised to learn that research published by the Spanish Registrars revealed that over 80% of the properties sold in Marbella went to foreign investors.

The data for last year shows that foreigners purchased just under 14% of the properties sold in Spain. 60% of these foreign investors came from the European Union. Another report; one focused only on Marbella, used the Spanish Registrar data to show just how popular Marbella property for sale has become for international buyers.

The report shows that the demographic of Marbella has changed a little though. Marbella remains heavily international but now more Spaniards are coming back to the resort and the towns in the area.

The number of Spanish visitors to Marbella was over 350,000 a year in 2006. The number was reduced dramatically by 2013, when barely 100,000 Spaniards made the journey. There were a few reasons why such as the poor economy, the high cost of staying in Marbella, and the whimsical nature of fashion.

Last year Marbella suddenly became popular again with over 250,000 Spaniards visiting. This number is expected to rise again this year.

The property market of Marbella is looking healthier than ever too. There were 4,390 homes changing hands last year. This number was just one percent below the 4,432 homes exchanged in 2006; the peak of the housing market.

Experts say this is due to the demand for homes in the area, better prices, and higher buyer confidence. The recovering economies in Europe and the world at large are also behind this increase.

Even though more property is being sold the latest data suggests that the properties of Marbella are still priced at around 20% less than they were during the peak of 2005.

Over Three Quarters of the Spanish Homes Sold to Brits Were Resales

Over Three Quarters of the Spanish Homes Sold to Brits Were Resales

While it is still early days for 2016 it looks like three trends hinted at by the end of 2015 are coming true.

The first, and the most encouraging, trend is that the Spanish property market is recovering. It looks like both house prices and the number of properties being sold is on the rise.

Costa del Sol will always be a firm favourite place to buy property 

The second trend is that buying resales properties especially in the Costa del Sol are outpacing new properties. Second hand homes are being sold at a much faster rate than new properties. The third trend that is likely linked to the other two is that British buyers are coming back.

Brits were the buyers in one fifth of homes sold to foreigners in 2015. Data has emerged from the Spanish Ministry of Public Works that reveals that 76% of the properties that were resales were bought by British nationals.

At one point British buyers were all over the new properties being built in Spain. After the economy began tumbled during the past decade this interest went down. Now that the economy is more confident the British buyers are coming back and the property market in general is recovering.

The data shows that while there is still some interest in the new build market, especially among Scandinavian and Belgian buyers, the interest is still mostly in the resale market. Just over 69,000 homes were sold in 2015 to foreign investors. This was rise of 13% over 2014.

The reason that people are buying Spanish property has also changed a little since the market started to fall a decade ago. These days most people purchasing a house are interested in a holiday home rather than seeking to rent it out and make an income.

As a result of this shift the renting market in Spain has fallen each month for the past 35 months.

Marbella Showcases the World’s First Revolving Solar Homes.

When you get right down to it the entire world is solar-powered. Everything on Earth draws some energy from the sun. Everything that has ever existed, from rocks to oceans, to forests, to the industrial revolution, and even the Beatles and Benedict Cumberbatch, they all owe their existence to the Sun.

Marbella solar homes for sale

Today when you think about solar power you think about solar panels. The Spanish government has proven to be infuriatingly regressive on the issue of solar power. They even introduced a sun Tax in Spain that punishes people who choose to install solar panels on their roofs.

A Marbella based company has come up with an idea to solve this problem though and help people get around this “sun tax” while still enjoying the benefits of clean and powerful solar energy.

The company is Sunhouse360° and their home literally rotates every 15 minutes to give each room the maximum amount of sunlight throughout the day.

Property for sale in Andalucía and all of southern Spain sees so much sunlight that this kind of creation can reduce energy bills by up to 70%, at least according to the company. This is because of the floor-to-ceiling windows that cover the entire home, and an interior layout designed to let in as much sunlight as possible.

Home owners can choose from different sized properties and can also have photovoltaic panels installed on to the home as well. This will combine the thermal energy of the sun with regular solar photovoltaic powered electricity.

The houses for sale in Costa de sol have a understandably high price of £753,000 (+IVA) at first, but this will get you a 250 square metre property that won’t cost nearly as much to run and maintain.

How often, and how quickly, the house rotates has been programmed to make sure that the home owners don’t even feel the rotation. Sunhouse360° have also said the homes should be programmable to let owners set a rotation frequency that suits them.

Sunhouse360° believe that having sunlight in the home is very beneficial and that it is possible to change so that the light reaches the entire house. Or, if you wanted to, it can be programmed so that light I always in the kitchen.

The idea for the home was first developed over two years ago and it is believed that the homes will be available in early 2016.

The Costa del Sol homes for sale are also programmed with “eco rotation” software. This software will detect which parts of the house are the coolest and bring it into the sunlight. It is designed for when the homes reach more northern climates but is still effective in the southern areas, where it turns the warmer areas of the house away from the sun to keep the whole property cool.

The Sunhouse360° makes use of virtually everything that makes property for sale in Marbella and the area such a great tourist destination; innovation, sunlight, and property. It’s going to be interesting to watch as these Costa del Sol homes for sale pop up all across southern Spain.

The future looks bright for the Costa del Sol property market.