Market Analyst PwC Says Conditions for Investing in Spanish Property are “Perfect”

Market Analyst PwC Says Conditions for Investing in Spanish Property are “Perfect”

Spain continues to be a fantastic long

term investment

The financial analyst firm PwC recently published a positive assessment of the Spanish property market, saying that the sector was “perfect” for investment in 2018. The report, titled Tendencies in the European Property Market in 2018, looked at leading property markets in the continent, assessing past performance and potential futures.

PwC believe that 2018 will be as strong as 2017 for the Spanish property market, with both sales numbers and average prices expected to increase. An interesting part of the report is the correlation between the health of the European economy and Spanish property. As European countries get stronger financially and have better job security, the Spanish real estate sector improves.

These parallels may be obvious but they aren’t always clearly defined by historically cautious analysts. Because of how foreign homebuyers affect the Spanish property sector, the more confident and rich Europeans are the better it is for Spain. 

Conditions in the country itself also make investing in Spanish property attractive for both domestic and foreign investors. Prices are expected to increase between 4-6% during 2018 and this kind of growth is ideal. It balances out returns on investment without increasing so much that it scares financial markets and banks. 

When you consider that Spanish property prices are still around a third lower than they were at the peak of 2007 and it’s obvious that Spain guarantees value for money when it comes to property.

The report was also impressed by how Spain is able to maintain interest in the recovery of their property market. Values and sales have been growing steadily for the past three years now, and PwC were pleased by this stability. This is why they concluded that Spanish investment conditions are “perfect”, which is high praise.

Spanish Second Home Market Redefines Itself

Spanish Second Home Market Redefines Itself

Costa del sol continues to lead the way in property sales and rentals

There’s no such thing as a “typical” overseas buyer when it comes to Spanish property. For every millionaire looking for property in La Zagaleta, there’s the average Joe that has worked hard to finally invest in an overseas property.

However, it’s well known statistics can be manipulated to tell any story, which is what happened with real estate portal Donpiso. The results are interesting to say the least.

The data shows that an average holiday home in Spain costs €200,000, is o the or near the coast, and is purchased by couples between 35 and 49 years old, with children and a regular monthly income of at least €3,500.

The cheapest coastal region in Spain to purchase property is Murcia, where the average holiday home costs just €150,000. The figure increases as you move across the Costa Dorada. Costa Brava and Costa Blanca with those buying second homes on the Costa del Sol spending an average of €350,000.

It’s true that you really can do anything with statistics. Even though house prices do rise on the Costa del Sol faster than anywhere else since the beginning of the recovery, €350,000 is still higher than the average price one would be paying for a home in the area.

The figure is skewed as Marbella is where the most expensive postcode in the country is found, along with many exclusive neighbourhoods and urbanisations packed with luxury homes. In the more affordable areas of the region, buyers can get a property for the bargain price of around €200,000.

Other trends related to dates show that the summer is the busiest time for buying holiday homes, while demand cools off during the run up to the Christmas holidays.

Another study from Marbella Property Group praised the Spanish property sector, stating that the industry has undergone a major transformation as of late with higher employment levels, an increase in disposable income, and a rise in consumer confidence boosting housing demand, along with the 20.2% increase in mortgage lending in March of 2017 compared to last year.

New Market Value Data Shows 4.3% Price Increase for Spanish Properties in October

Spain property prices continues to grow in value 

New Market Value Data Shows 4.3% Price Increase for Spanish Properties in October

The latest data from Spanish property valuation firm Tinsa has shown that the average Spanish property price in Spain increased 4.3% in October of 2017 compared to 2016.

The statistics are for the entire country, meaning there are some regional variations to take note of, particularly the increase of 6.4% in provincial capitals and large cities like Barcelona, Madrid, and Malaga.

An interesting thing to note is that properties close to the Mediterranean coast have only increased 0.9% in market value for October over last year. This is somewhat of a blunt measurement by Tinsa however as anyone who lives on the Costa del Sol can tell you that not every Mediterranean region and resort is created equal.

Costa del Sol properties tend to increase at a steadier pace than in other areas. There are less peaks, but there are also less troughs, meaning that Tinsa putting all Mediterranean regions into a single category is somewhat misleading.

With this said, this category has also seen a 4.3% increase in home values over the first ten years of the year over the same period of time last year. That gives a better picture of how the markets in the Mediterranean are doing.

The market value data from Tinsa was published with a snapshot of different market indicators. Other statistics show that mortgage approvals improved 13.2% leading to August over the same period last year; a 7.91% reduction in employment to date in 2017; and the rather encouraging statistic that property sales have increased 14.3% in 2017 up to August compared to the same period of 2016. 

Spanish Property Market Forecast 9.3% Growth in 2018

Spanish Property Market Forecast 9.3% Growth in 2018

Spanish Property continues its recovery 

It’s estimated that 526,000 properties will be sold in Spain during 2018 – an increase of 9.3% over the 481,000 home sales expected in 2017.

The anticipated growth will also bring in a nationwide average price increase of 6.1%, which is just under the 6.9% price increases from this year. Properties will still be affordable in 2018 however, as even with this anticipated 6.1% price increase average Spanish property prices will still be a good 27% below the peak from 2007.

The data comes from Anticipa, one of the leading real estate providers and analysts in Spain. The firm compared the projections for next year against the performance of last year – 2016 – and found home sales increased 21% between 2016 and 2018.

This is an impressive level of growth, especially when set against the crash in Spanish property less than a decade ago, not to mention the following economic problems Spain has had, including a recession.

The analysis for 2017 comes from the fourth quarter projection that home prices are set to increase 5% during the final three months of 2017.

What’s most exciting about the forecast is the calculation that over 520,000 homes will be sold next year. This would mark the first time that over half a million homes have been sold since 2008, which is nearly double the figure from 2013 when only 285,000 homes were sold. 

While the forecast for next year is still around 42% less than the record 900,000 homes sold in 2006, it’s built on a solid foundation unlike 2006 when the credit bubble was set to burst at any moment. 

Leading Experts Confident in Health of Spanish Property Market

Leading Experts Confident in Health of Spanish Property Market

The next few years look very promising as the Spanish property

market continues to grow from strength to strength.

With more new homes being built, more homes being sold, and all the growth, some people were sceptical that the property market could continue into the long term, even though the early signs suggested the recovery was as sustainable as it was steady.

Now some leading analysts of the Spanish property industry are now speaking of their confidence in the health of the property market, and that it wasn’t another bubble about to burst. The latest data on house prices for March shows property prices across the country have risen between 1.8% and 4.5%. This regional variation is the driving force behind the confidence in the long-term health of Spain.

Real estate expert Mark Stücklin analysed the data from the Tinsa index. His analysis led him to the conclusion that average asking prices are very healthy right now, and are showing no signs of overheating.

He added that the Balearics is the only place where the higher price increases – as much as over 4% - are an outlier. The reason for this is that there is less landmass there, meaning there is less property and higher premiums.

The mainland of Spain is much more sober market – a fact agreed on by the Bank of Spain. Juan Antonio Gómez-Pintado – the head of the Spanish Developers’ Association – said the recovery is “normal” thanks to the average price increase of 3% in February over last year. To contrast this, a 3% gain would have been considered a small growth for a month back in the peak of the property boom in 2006.

The market this time is much more stable, secure, and attractive.

Malaga has Become The Most Dynamic Property Market of Spain

Malaga has Become The Most Dynamic Property Market of Spain

Southern spain continues to be the best place to buy property

in spain

The latest report from the BBVA Bank, called Situación Inmobiliaria España (‘Spain Real Estate Outlook’) has named Malaga – the home of the Costa del Sol – as the province with the most homes sold in Spain. Demand for homes in the region have increased around 15% between 2014 and 2016.

The study was presented in the Costa del Sol capital by analysts from BBVA Félix Lores and David Cortés. It also shows other positive facts about the real estate sector of Spain and how healthy it is.

The authors of the study pointed out that, between 2014 and 2016, Malaga property prices rose by 3.1% - which is three times the national average. This puts the province into third position in Spain. The only regions that came in front of it were the Balearics and Barcelona, where prices increased 3.5% and 3.3% respectively. This kind of positive change wasn’t seen in every region in Spain, as prices in Seville dropped 1.6% during this period.

The study showed new house project building licenses in Malaga increased by 55%. This puts the province – along with Barcelona, Alicante, and Madrd – ahead of the pack. The study did admit that numbers aren’t close to the peak levels before the financial crisis of 2007, even if they are recovering nicely.

Lores said that sales picked up since 2013 with Barcelona, Madrid, and the rest of the Mediterranean arc and islands enjoying the most recovery in Spain. The findings of Lores are in line with the findings of real estate experts, in that he agrees the growth in Spain is driven by an increase in buyers from overseas, along with better employment rates and higher levels of disposable income in Spain.

Spain Mortgage Market Records 14% Growth in 2016

Buying property in Spain has never been so easy or cheap

While it’s hard to accurately gauge the growth of the Spanish property market in 2016 because there are a lot of different metrics involved in measuring it, mortgages are one area where the growth is obvious.

After all, mortgages are always mortgages. The data from the Spanish central statistics institutes shows that 14% more mortgages were approved in 2016 over 2015. There were a total of around 281,328 mortgages issued last year in Spain, with December welcoming the 29^th year-on-year increase across 30 months as 20,747 mortgages were taken out by new homebuyers.

December alone saw a 6.9% increase over December of 2015, and continued the welcome trend of increased confidence in the Spanish property market. It also served as more proof that the boom is supported by foreign and domestic buyers alike.

Referring to the trend as an “upturn” would be a little unfair though. The word “upturn” suggests that it’s just temporary, while the reality is that things have been looking good for 30 months now. That’s hardly a temporary boost.

Something else interesting about the data is that the average loan was around 2.8% higher than it was in 2015, which shows not just an increase in property prices (an increase that ranges depending on who you ask) but also the growing confidence of banks and other lending institutes in the solvency of borrowers. This basically means that more Spaniards are employed in secure, well-paying jobs, leaving them in better positions to buy homes and reassuring banks that the economy is doing well.

In terms of numbers, the average mortgage in December was €112,680, with an average of €109,759 for the entire year.

Dubai Firm Set to Make Major Investments in Spanish Property Market

Dubai Firm Set to Make Major Investments in Spanish Property Market

Investment is arriving from all corners of the world

It wasn’t all that long ago when thinking of Dubai made you think of a futuristic metropol

is, coming forth from the desert and offering affordable, luxurious property to all those who could take a trip to the UAE.

Times have certainly changed. What used to be considered the main rival for Spain in terms of investment property has now become little more than a shadow of what it once was – at least as far as expats are concerned.

Dubai was more reckless than even Spain during the property wave that peaked at the turn of the millennium, and the crash of that wave was much more spectacular. There are entire sections of the city that remain undeveloped as thousands of people lost their credit.

Dubai still retained its appeal to people with their own capital though, and the Emirates is managing to recover quite well these days. It might be a while yet before it starts rivalling the real estate recovery of Spain, but there is always opportunity whenever there is money – and Dubai certainly has money.

The opportunity appears to lie in Spain. Dubai-based holding company Imperio Group announced this week that they plan to invest €50 million in the Spanish real estate market through 2017, and are likely to invest even more in 2018.

The group has a penchant for investing in old properties and renovating them, and they’ve found an ample hunting ground in Barcelona. They spent €6.5 million this month alone investing in the Vinçon Building on Pau Claris street.

The Vinçon building overlooks La Pedrea and Imperio Group have plans to create a range of luxurious dwellings within the building.

Imperio is looking to create 19 apartments within the Eixample district which, if you’ll pardon the pun, is another fine example of the appeal Barcelona has to foreigners.

If you’re a regular reader then you won’t be that surprised to learn about the Emirates investing in northern and southern Spain, but there’s a bigger picture you might be missing. Given that US heavyweight Lone Star has announced plans to invest in Spanish property, and all of the good news streaming in from the real estate sector during the last two years, there is plenty of reason to celebrate that wealthy Dubai investors are now joining the investment bonanza. It’s also something that would have seemed impossible a decade ago.

It’s Confirmed; Spanish Property Market grew 13.6% in 2016

It’s Confirmed; Spanish Property Market grew 13.6% in 2016

As new data came in each month during 2016, it seemed to be painting an incredible picture; the likes of which one might expect to find in the Louvre. As each month passed, the news continued to get better, so it’s not surprising at all that the data from the end of the year, published just last week by the central statistics unit, showed that the property market in Spain grew 13.6%in 2016.

Its fantastic news for Spain and confirms the up trend in property

This impressive figure is based on the transaction data from all 17 autonomous regions in Spain; showing that 403,866 homes changed hands in 2016.

As if being 13.6% higher than in 2015 wasn’t impressive enough, this figure also represented a 26.7% increase over 2014.

One of the most significant figures, however, was that there was a sales increase in each of the autonomous regions in Spain. Some flew high, and some only climbed a little, but this still represents a 100% positive trend, which is definitely good news for the real estate industry in 2017, and the Spanish economy as a whole.

The Balaerics saw the largest year-on-year growth in property sales, registering an increase in transactions of 31% in 2016 over 2015. Great performances were also seen in Catalunya, Asturias, Málaga, and Extremadura.

On top of this, an increase in sales volume was reported for 23 of the past 24 months, which would suggest the trend will continue into 2017 and potentially even 2018.

Something else that was interesting about the data was that analysis shows a majority of the sales were resale's property; as only 18.6% of the homes sold in 2016 were new builds. This marks the third year in a row with falling new home sales, which suggests that there could be a drop in supply of new home builds; great news for the construction industry in Spain.

Part One of Our Review of the Spanish Property Market in 2016

Part One of Our Review of the Spanish Property Market in 2016

2016 saw an amazing year for Spain and the Costa del Sol

2016 was an overall bad year in general, marred with terror, war, conflict, and loss. Even so, it was a good year for Spain as the country underwent economic and social recovery.

2016 was a very uplifting year for the Spanish property sector, with each month proving to be stronger than the one before it. Today we’ll be taking a look at what the first half of 2016 meant for Spain, in particular the property industry.

January Saw Brits Splashing Cash

Data from January showed that €13 billion of the €65 billion spent by tourists in Spain across 2015 came from Brits. This figure represents an increase of 8.9% over 2014. The average British tourists spent around €111 per day with Brits contributing €40 million a day to the Spanish economy in 2015.

February Saw the North/South Divide Widen in Spain

An assessment of the property market in February showed that, as is the case with the UK, there is a strong north/south divide in Spain. The divide is particularly apparent with living and property costs. The Spanish one is the opposite of the British one however as the best value is found in the south, where living costs are around 15% below the national average. In terms of property an 80 square foot property would cost €131,000 in southern Spain compared to the €241,000-€328,000 average house price in the north.

March saw a 14% Increase in Arrivals

Easter fell in March for 2016, which did wonders for Spanish tourism. Data from the Spanish aviation industry shows that over 16 million people entered Spain in March; 14% more than visited the country in March of 2015. This figure was the first tangible sign of the most record-breaking year in Spain.

April Saw the GMT Issue

Spanish politics were deadlocked for much of 2016. Mariano Rajoy of the People’s Party (PP) pledged to bring Spain back to Greenwich Mean Time (GMT) if he were to win the re-election; an election victory that Rajoy enjoyed just a few months ago. The message appears to have stuck and it looks like Spain could soon move their clocks forward an hour to embrace the timezone appropriate for their geographical location.

May Saw Thoughts of Bill Gates

There’s a very good reason Bill Gates is called the World’s Richest Man. He has legendary investment savvy and his geeky demeanour disguises the ruthless competitor he really is. When Bill Gates took over €100 million and invested in Spanish property in 2013 it raised a few eyebrows. This investment was considered to be a bit of a bust, but nothing is average about Gates. He could see the long game; he invested knowing the country would recover and now he’s reaping the fruits of that recovery.

June Saw Prince Increases Expected to Last Until 2025

As Spain welcome summer tourism was running wild in Spain by the time it was announced by financial management professor at the IESE business school José Luis Suárez forecast that property prices in Spain would continue to rise until 2025. The professor calculates that the price of homes in 2025 will be an average of 40% higher than they are today, and that this would drive up new builds across the country with up to 140,000 new properties being erected across Spain annually by 2025.

FT Reporting Stars Are Aligning for the Spanish Property Market

Spanish Property Market has grown and strengthened

Spain has finally turned the property corner and the

next 7 years looks excellent, buy property Costa del Sol.

The Financial Times are reporting that the  Spanish property industry has grown and strengthened so much that it recently turned a very large corner.

Following the massive price declines of up to 42% that happened between 2007 – 2014, the Spanish property market of today is filled with much more confidence and activity across the country. The market is supported by the improved economy, a new government, and the ever-present foreign investment.

During the third quarter of the year property prices went up by 7% and 9% respectively in Madrid and Barcelona over last year, with an increase in nationwide sales by 10% according to the latest data from the Spanish National Statistics Institute (INE).

The FT is reporting that investors can see how well the Spanish economy is growing and that businesses are beginning to jump back into commercial real estate.

Fernando Encinar, the co-founder of property portal Idealista spoke to the FT and said that there was a time between 2010 and 2012 when international investors avoided the Spanish property market. The lack of trust in the Spanish property market is gone and in its place are investors saying they want yield.

The FT reports that the recovery has been a gradual affair which is in line with how VIVA have read the market.

The post-recession upswing was originally recognised back in 2013 when the recovery began in the most protected areas such as Marbella. Following this came the interest from opportunistic investors that decided to go for those high-risk high-reward investments.

Investment firms including Cerberus Capital Management, Goldman Sachs, and Blackstone started purchasing property and it didn’t take long for private individuals to join in.

Miguel Pereda, the chief executive of Grupo Lar, says that consumption has recovered in Spain and that there has been a drop in unemployment. With an increase in consumer confidence has also come a 9.2% increase in sales for Pereda.

Investment has increased 25% in commercial real estate across the past year, with CBRE calculating that some €13 billion was invested in 2015. The amount of residential sales has also increased by figures in the double digits during the past 18 months, which has led to a snowball effect of an increase in demand and sales prices.

It looks like after six years of being considered a taboo of the economy the real estate off-plan developers are getting back in the game, and the stars are once again lining up for the Spanish property market.

Contact Costa Del Sol Property Group for the latest new builds today.

Is the Spanish Property Market Being Boosted by Climate Change?

Is the Spanish Property Market Being Boosted by Climate Change?

Spanish summers are getting longer which

is wonderful for the area

This idea sounds a little silly at first; how could climate change – a very real problem – be contributing to a market whose strength is determined by how many people buy and sell properties?

There is one voice in coming out of the Spanish property industry that is suggesting that the Spanish summers are getting a little longer and now high season has been extended so much that the property and tourism sectors of Spain are bound to see some benefit.

The voice belongs to Chris White; who has been working in the property industry of Spain for decades now. He believes that climate change has had an impact on the already excellent climate of Spain that has been good for both industries.

The warm summer sun in Spain can last into December, long into the darkest and most dismal part of the year for the UK when the weather gets colder, the days get darker, and it’s too early to get into the spirt of Christmas. The property market of Spain is really reaping the benefits.

White says that the weather is one of the primary reasons British buyers are so in love with Spain. Spain is such an ideal destination for Brits because the sun and the sea are just a short flight away.

He added that Spain has very appealing during this time; when the weather in Britain gets colder and the night comes a little sooner. White said that Spain is already seeing the benefits of longer summers thanks to the record tourism numbers and the fact that Spanish property transactions have gone up for 24 of the past 25 months.

It is a little difficult say for sure if climate change had anything to do with these record numbers however. The Spanish tourism numbers have been growing quite a bit across the past 18 months. Part of this is also the rise of terrorism in countries such as Egypt, Turkey, Tunisian and even France. These countries have all been gripped by the hands of terrorism and so tourists are choosing the safer shores of Spain.

The rise of the Spanish property market could also be down to the improved economy of Spain and Europe as a whole thanks to banks putting less stringent restrictions on lending and a more transparent market.

Even taking this into account there is a bit of truth to Mr White’s words. The latest data from Aena; who manage a selection of Spanish airports, suggest that there are more Brits than ever before booking Trips to Spain in November and December. The number of winter tourists is also rising at a faster rate than the number of summer tourists.

White says that there is definitely a correlation between the number of people visiting Spain and the number of foreigners buying Spanish property. The longer and warmer winters and autumns are leading to more visitors and even more foreign interest in Spanish property. These visitors are also able to enjoy the beaches and waters of Spain, which is a plus for them.

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.

Experts forecast real estate market of Spain to see a growth till 2025

Experts forecast real estate market of Spain to see a growth till 2025

The real estate market in the Costa del Sol and Spain is set to see a 40% growth within the next ten years, opined an expert.

With the prevailing trends, the growth trends can be expected up to 2025 as per forecasts from Jose Luis Suarez, who is a professor of financial management at the IESE Business School.

After considering the existing property trends, Suarez said that the appreciation of property prices are certain for the next decade and it is similar to the trends exhibited by the real estate before it reached a new high in 2008, just before it crashed.

The professor predicts that the property price will go up by 40% by 2025, as Spain is a hot destination for property investments.

The demand for houses in Spain will go up and nearly 100,000 houses will be added every year until 2020, following which there will be an addition of 140,000 houses annually till 2025.

This time, the property hype is controlled and is not like the last time, with investors keeping it realistic and not expecting quick returns from the market. The increase in property prices for the first quarter in 2016 stood at 6.3%.

Suarez indicates that it is a bright season ahead for the housing industry after a lean period in 2014, where only 50,000 houses were added, unlike the peak of 800,000 houses back in 2008 before it all crashed.

Spain’s housing market flourishing rapidly owing to the new properties and large influx of foreign investors.

Spain’s housing market flourishing rapidly owing to the new properties and large influx of foreign investors.

New construction is being snapped up by foreign buyers

which is great news for the Costa del sol.

The housing market of Spain seems to sound promising, due to the increase in the number of foreign buyers and also due to approvals given to several new construction projects.

Predominantly, the two main factors that triggered the last housing crash were the proliferation of newly built homes in Spain along with the large number of foreign investors, who had intent to realize profits hastily.

Apart from that, there were several other counter factors that played a role as well, but the unreliable builders and credit-backed buyers went into panic mode, thereby triggering the crash and putting all the financial entities in a tight position.

This would clearly create an impression that people were skeptical when they heard this news as they would not want the housing market of Spain to witness history again.

However, the best part is that things are not the same like how it was the last time. Now, there is no scope for unsustainable credit. Developers are also not desperately searching for land parcels and developing them rapidly. Instead, procedures are followed and the pace is not the same like how it was during the crash last time.

Based on the figures as released by Formento, plan approvals given increased by 57% during the first quarter of this year compared to the count of last year and the count this year stood at 16,782.

This figure is the highest for a single quarter since 201. However, it nowhere comes close to the previous count of 860,000 approvals back in 2006, which corresponded to 200,000+ approvals being granted on a quarterly basis.

Looking back, this was indeed crazy and a scary move, with a million properties being added in the housing market of Spain within a year. The pace at which properties are being developed in Spain now is manageable and the demand supply gap is maintained.

This has also resulted in the property prices increasing steadily, thereby attracting foreign investors, based on the findings of the Council of Property Registrars.

The statistics released by the Spanish body indicate that there is a 13% hike in the number of foreign nationals purchasing a property in Spain, with over 48,000 properties being sold to foreign investors in the previous year.

The British were the highest number of foreign investors at 21%, while the rest composed of buyers from France, Germany, Sweden and China. Due to the high demand by foreign nationals, property prices in Spain have started to pick up and there is a 6.9% increase quarterly.

Also, a total of 100,000 properties were sold in Spain in the first quarter of 2016, making it the highest in the past 12 quarters.

Spain’s property market to attract massive investments from pensioners.

Spain’s property market to attract massive investments from pensioners.

As per the data obtained, it is indicative that majority of the wealth is held among people above 50 and hence, there is a strong speculation that a majority of their investments might be in the Spanish property markets.

Older people looking for a better quality of life are

moving to The Costa del Sol

A travel agency named Silver TravelAdvisor, which is known for conducting holidays among people aged 50 and above, stated that 80% of the private wealth of UK was summed up by people aged over 50 and they are exploring places like Iberia and Spain, which they consider to be a sound investment for their wealth.

Among the Brit expats, 14% of them are located in Spain and the expat portal of Brits known as the Brits Abroad has indicated that the property market of Spain might flood with investments, as majority of the people will be retiring soon and might strongly consider investing in Spain.

People retiring soon are rich on funds and will generally have the liberty to explore the world. However, when it comes to the place where they want to reside from then, Spain is generally the first choice, as per the Director of Kyero, Martin Dell.

Spain offers a variety of advantages, such as the excellent weather, delicious wine, healthy cuisines, beautiful golf courses and it is also rich on the cultural history. It also has sprawling architecture spread all over and has a lot to explore for retired people. The cost of living is also moderate, and people who have a decent affordability consider this to be the best place for retirement.

Despite the relative strength between pound and euro, pensioners from Britain are getting more for their money. As per the building society of UK, Nationwide, the cost of owning a house in Britain on an average is £200,251, equivalent to €255,000, making British to invest more in Spain.

Although there is no clarity about the EU referendum, the Brits are still eyeing on the property markets of Spain owing to the affordability it has to offer and the relatively lower living costs. Even today, Costa del Sol is the cheapest holiday destination in Europe, making it a tourist haven too.

Costa del Sol is now attracting real estate workers to invest more, so that they can cash in on the benefits once the EU debate has been cleared out.

Study Finds The Spanish Property Market Performs Strongly in Europe’s Buy-To-Let Chart

Study Finds The Spanish Property Market Performs Strongly in Europe’s Buy-To-Let

Buy to Let out strips demand in the Costa del Sol which is good news

People looking to become landlords should consider investing outside of the UK if they want to bring in better rental yields. A British investor after good returns from their buy-to-let investment will find it more difficult after the recent hike on stamp duty.

Money transfer company WorldFirst took a look at the situation and saw how poorly British properties performed with rental yields by comparison to the rest of Europe.

This study also discovered that, on the other hand, Spain performed pretty well. Spain came in the top half of nations for bringing in money though rental income.

Going back to the UK though, the study found that a buy-to-let property in the UK would generate an average rental yield of 4.3%. This was enough to rank the UK 21^st out of 29. The bottom country was Sweden where there are strict rental controls. In Sweden a tenant is protected from having their rent hiked and this, along with other restrictions, discourage investment.

It was found that countries in Northern Europe, especially in Scandinavia, didn’t have very high rental returns. The only exception to this was the Netherlands where the average yield is 6.57%, making it the best market for buy-to-let properties.

WorldFirst believe that this is because of the low property costs in the Netherlands, and the healthy balance between the amount of people that own property and the amount of people that want to rent it.

Outside of Spain and the Netherlands other countries for the buy-to-let market were Belgium with yields of 6.47 and Portugal with yields of 6.29%.

Spain came in almost at the exact middle point by taking the rank of 15^th with their average yields of 4.96%. This was the average yield however. In some of the more desirable areas, such as Costa del Sol and Costa Blanca, the yields may be much higher.

These are areas where the rental yields constantly come in at over 5% a year. They also have some very affordable properties for sale and there’s plenty of demand as Spain is one of the most visited countries in Europe. All of this goes together to make Spain a far more attractive country for the buy-to-rent market than these numbers suggest.

Overseas property specialist Simon Conn has himself suggested that when looking at these average yields it is also important to consider the public demand for housing and how easy it is to buy property in that foreign market. For example, the Netherlands may have the best yields but it doesn’t have the same amount of banks willing to lend on a buy-to-let property. Thus Spain, Portugal and Italy actually become the best choices.

In a comment about the study an analyst for WorldFirst, Edward Hardy, said that after the changes to stamp duty British investors may want to look further to find the best deal for high returns on their investment.

Buying property in the Costa del Sol is considered very bullish and the demand for rental property is very strong as many new northern Europeans come to rend first before they buy.

Amount of Foreign Buyers Grew Higher Than Spanish Buyers in Spanish Property Market

Amount of Foreign Buyers Grew Higher Than Spanish Buyers in Spanish Property Market

Costa de sol property for sale continues to be in demand

Data has emerged that shows the amount of non-Spanish property buyers in Spain grew by 12.9% in 2015. Roughly 1 in 5 homes sold in Spain in 2015 was sold to a foreign buyer.

Overall a grand total of 76,780 homes were sold to foreigners in Spain. This was a big increase on the number sold in 2014 and was much higher than the 9% increase in Spanish buyers.

A total of 383,987 homes were sold in Spain 2015. Outside of native buyers the most buyers came from Britain. British buyers accounted for 20.6% of all the homes sold to non-Spanish buyers.

British interest also grew more than any other country. The number of homes sold to British buyers was up a whopping 37.7%; over 4 times the increase in growth for Spanish buyers.

British property buyers bought a total of 15,810 homes last year. They were definitely the biggest foreign national group. France came in second with 8.8% of the homes sold to non-nationals going to the French. Next came the Germans at 7.5%, Belgians at 5.7% and Italians at 5.3%.

The sixth-largest nationality were the Romanians. They made up 5.3% of all the homes sold to foreign nationals. This was a massive growth of 59% on the previous year. The amount of Russian interest dropped a little and the amount of American interest stayed roughly the same.

Most of the property sold to a foreign buyer was in Andalucía with 20.5% of all the homes sold to foreign nationals in the city. This suggests that the climate, infrastructure and culture of the entire Costa del Sol region is bringing in the buyers.

The Valencia region was the place where the most property was sold to foreign buyers though. Valencia is home to Costa Blanca and 27.6% of the homes sold to foreign nationals were in the Valencia region. Other popular regions were Catalunya at 15.3% and the Canary Islands at 10.1%.

Summer Has Arrived and Brought a Boost to the Job Market With It

Summer Has Arrived and Brought a Boost to the Job Market With It

Busy beaches and bars are just one of the signs that summer has arrived in Spain. With the season comes the seasonal boost in the job market too.

Summer is here and expected to be a busy season in costa del Sol

Spain has a lot of signals that summer has finally arrived. The mercury rises in thermometers, the streets fill with people, and tourists can be found all over the beaches and bars of the Costa del Sol. Taking a look at these indicators it’s obvious that summer has reached some parts of Spain. As long as you ignore the sunny spells and damp weather that is.

One of the biggest indicators that summer has reached Spain is the job market. The amount of action in the country means that unemployment drops as summer approaches. Spain is one of the most visited countries in the summer and all those tourists are going to need people to take care of them after all.

It’s a trend that has continued this year and the results are encouraging. Statistics released by the Labour Ministry have shown that around 160,000 new jobs were created in April with unemployment figures dropping by 83,599. Spain currently has just over 4 million people registered as unemployed. This figure is pretty high but it is slowly decreasing as the economy continues to improve and new businesses starting in Spain. 

Spain has seen a lot of labour reforms, changes to tax, an improved real estate sector and plenty of other economic growth but really summer is one of the main reasons that things are continuing to improve in the country, even if the growth is a little slower than it was last year. April of last year saw 175,000 new jobs created compared to the 160,000 this year.

The data shows that the most growth was seen in the hospitality, manufacturing and administrative sectors.

Spain has now been recorded to be the sixth biggest real estate investment market worldwide.

Spain has now been recorded to be the sixth biggest real estate investment market worldwide.

Property for sale in Costa del Sol and the overall real estate market in Spain has now become the sixth biggest worldwide with regards to sales volumes confirmed by CBRE consultancy company annual data.

Spain

The real estate market in Spain came in 16^th in 2013 and 11^th in 2014 but has risen to 6^th place last year due to the remarkable sale growth of 2015 and has been seen in many other regions of the country.

Spain is showing a higher interest in property purchases than China, Canada and even France according to figures, this has begun bringing high investment companies like George Soros a leading US billionaire to look into the commercial sector in Spain.

The CBRE predicted that the Spanish property market in 2015 was to have a total investment of up to €13 billion, this would surpass the Spanish record of 2007 which was €10 billion just before the market crash took place.

Due to the much needed transparency and changes made to Spain’s real estate market, this has made for a much healthier sector and has deflected any unethical investors who affected the property market with artificial price inflation.

Within the residential property market, the rise in prices have been steadily increasing in the right way, this reflects on the sector that value for money and reduced properties in the Costa del Sol that are available shows when purchasers can make a good investment when buying good quality properties in the highly sought out areas of the world.

CBRE have said that the Spanish market is one of the places that property purchases will give investors a good return on rental income and also through capital gains making it more profitable than the real estate sector in the UK for example.

Confidence is flooding back to the Spanish market especially buying property in the Costa del Sol, CBRE data show that some of Spain’s capital is now making its way to overseas real estate with figures showing that half of last year reached €1.3 billion – showing a bigger investment overseas than richer countries such as Japan and Norway.