Monthly Sales Figures for Spanish Property Top 40,000

Monthly Sales Figures for Spanish Property Top 40,000

The Costa Del Sols continues to grow in property

valuation which is great news 

An analysis of Spanish property sales data by market valuation and appraisal firm Tinsa shows that transactions have stayed steady around the 40,000 mark for the last few months. The performance suggests that the Spanish property market is entering the next phase of growth; a sustained, steady, and encouraging stage of growth that comes after the rapid increases in property purchases found when markets initially recover.

The analysis from Tinsa runs up to the end of July, when 38,841 Spanish properties were sold. This represents a 16.8% increase over July of last year and also means that – taken as being the end of a 12-motnh period – property sales were at their highest level for over six years, reaching a total of 437,000.

All 17 of the autonomous Spanish communities recorded increases in sales, with Tinsa forecasting that there could be half a millionsales recorded in 2017 – which would be the largest figure for a decade. If this was to happen though, it would mean monthly sales averaged 44,000, which sounds a little too optimistic for the current market.

Even so, with sales figures growing steadily and the robust economy, the Spanish property market can be confident about the 2018 ahead of them.

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.

Summer Road Deaths Fall 12% in Spain

Summer Road Deaths Fall 12% in Spain

Spanish drivers are taking less risks and accidents are down

31% less people died on Spanish roads over the summer of 2017 compared to 2016, which is encouraging. 

Driving through Spain is an incredible experience because of the stunning scenery and pleasant climate, not to mention the long winding roads across the most incredible and cliff-hugging terrain around.

Spanish driving habits are considered to be a reflection of the general psyche of the country. If we could describe British drivers as being patient and polite but prone to the occasional outburst of road rage, then it may be fair to say that Spanish drivers are passionate about driving and not afraid to show their emotions.

The reality is that everywhere has good and bad drivers of course, and this includes Spain. As Spain has modernised their road network through EU money, and cars are made safer with German and Japanese engineering, Spanish road deaths are drastically decreasing.

The latest data from the Directorate General of Traffic (DGT) in Spain shows road deaths in summer dropped 12% compared to the same time period in 2016 – which shows that Spanish roads are becoming safer than ever before. 

The data shows that 224 road deaths occurred in July and August in 2017, which is 31 less than in 2016 across the same time period. While the figure remains high compared to the rest of the EU (where Germany, the UK, and Denmark have the safest roads statistically) it is a great improvement over the space of one year, especially given that the amount of trips taken in the country across the summer increased 3% to 87.6 million. 

In regional terms, much of central and northern Spain saw less fatalities, along with the Balearic Islands.

Andalucía recorded a total of 38 road deaths in the summer, which was an increase from the 35 last year. The region remains popular with holidaymakers from across the world, most of whom are behind the wheel as soon as they leave the airport. This means that it is difficult for authorities to control road deaths and bring them to acceptable levels.

This can also be said of Catalonia, where the perpetual popularity of Barcelona goes somewhat towards explaining why 15 more road deaths occurred during this summer compared to last summer.

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. 

Tour Operator Thomas Cook to Open New Spanish Airline

Tour Operator Thomas Cook to Open New Spanish Airline

Good news for Spain and traveling passengers 

UK-based Thomas Cook – the creator of many package holidays (and memories thereof) for Brits – recently announced that they are to set up a brand new Spanish airline to cope with the expected increase in flights to the country in 2018.

During a time where a number of cheap airlines are going bust – such as Air Berlin and Monarch – or are struggling with staffing problems – such as Ryanair – Thomas Cook is looking to take advantage of the uncertainty of the industry by entering what could be the most competitive, and potentially lucrative, aspect of the aviation industry; serving the country of Spain.

Spanish airports are some of the busiest in Europe, bringing in holidaymakers from around the world across the year, mostly thanks to the perennial popularity of the country as being one of the very best tourist destinations in the world.

This is why Thomas Cook are to base their newest airline in Palma de Majorca, and are to begin flights to and from the Balearic Island from early 2018. The fleet will start out as three Airbus A320 planes, flying with a Spanish operating license, but Thomas Cook has said that they are likely to increase their fleet to meet the demand they expect to see.

Chief Ariline Officer of Thomas Cook Christopher Debus released a statement saying that the new base and airline will provide them with the platform to manage the seasonal demand for their business better, giving them better control over things at a lower cost as they continue expanding their destination choices for customers.

As large a company as Thomas Cook is, even they typically make losses during the winter. This is why operating seasonal staff directly from Spain allows the company to respond better to the demand and maintain profits between November and March, which is generally the quiet times for the company and Spanish tourism as a whole. 

Operating out of Majorca allows the Thomas Cook Balearics Division to better loan planes to other group divisions, meaning that the firm should have a better looking balance sheet. Thomas Cook currently have 94 aircraft and deal with a total of 16.7 million passengers on an annual basis.

Great Prices and Supply Make Spain a Major Real Estate Investment Destination

Costa del Sol has such appeal and continues to be in demand 

Great Prices and Supply Make Spain a Major Real Estate Investment Destination

It’s all too easy to focus on the incredible lifestyle attractions that entice people looking for a second home or an overseas property to Spain.

The incredible climate of the country, not to mention the stunning cities, superb beaches (and beach resorts), and varied terrain make imagining your new life in Spain about as easy as achieving it. With all the cheap flights and property choices, it’s no wonder that thousands of Europeans have turned their dream Spanish homes into a reality.

The wealth of variety and the value-for-money of Spanish property mean the market has become a hotbed for more serious investors; the kind of people that want to put their money in a safe place and get sensible returns.

The UK was the chosen destination for career investors interested in parking their wealth in property investments for quite some. The uncertainty of the Brexit has begun to unravel the reputation the country has for being a stable safe haven however, and the property markets in Spain and Germany are starting to draw attention.

According to a Knight Frank poll of 148 of the leading real estate investors controlling over £300 billion of real estate assets, 20% of the surveyed investors view Spain as their preferred market for investment in 2018, second to Germany. Only 12% of investors said that the UK would be their property investment destination of choice in 2017, down from the 27% for this year.

The investors were mostly concerned about the lack of available stock and the unrealistic prices in the UK.

By contrast, Spain has a rising demand for home, officespace, retail, and leisure facilities that make the residential and commercial markets particularly strong. The prices are also a fair reflection of the market value of properties. Because of the resurgent Spanish economy there is sure to be an increased demand for industrial and office space as time passes, according to the investors.