SPANISH AND EUROPEAN PROPERTY TRENDS ON THE UP
When looking at the ongoing recovery of the Spanish property market, it is important to put it in the context of real estate sales throughout Europe.
With buyers from Northern European countries such an important sector of the Spanish market, increasing confidence in the UK, Ireland, Scandinavian and other countries’ property markets has a direct bearing on popular resorts areas like Marbella. The feel good factor is crucial when people consider purchasing a second home in Spain—quite simply, if people feel confident about future prospects they are more likely to invest in real estate.
For this reason property professionals have been examining the latest figures from Eurostat, the European Commissions’s statistics office, with great interest—and they make for positive reading. While Spain has seen 18 consecutive months of increasing homes sales according to notaries, price rises have been following a two track system. Coastal hotspots like Marbella, and the major cities of Madrid and Barcelona, have been leading the way for three years, and now other areas of Spain are staring to following suit, leading to average increases of 4.5% across the country. Although figures are not available, anecdotal evidence points to Marbella real estate enjoying rises nearer the 10% mark through 2015.
Marbella real estate boost
Across Europe price rises have also been progressing at different speeds, with increasing confidence being most evident in countries like the UK, Sweden and Ireland—all of which have been traditionally important markets for Marbella’s tourism and real estate industries.
Overall house prices in the European Union rose 3.1% year-on-year in the third quarter (Q3) of 2015, with Sweden posting the highest growth at 13.7%, followed by Austria (9.3%), Ireland (8%) and Denmark (7.2%). In the UK—where London has been driving the price rises—the cost of residential property was up 5.5% year-on-year, and 3.9% over Q2 as the rest of the country started to catch up.
Luxury villas for sale in Marbella
Italy (-2.3%) and France (-1.2%)—two of Spain’s main competitors for the expatriate second home market—went against the general trend, although France saw a quarter-on-quarter rise of 1.7%, indicating the corner has been turned. Indeed, year-on-year sales in France rose 12.5% according to notaries, boding well for 2016.
While Irish prices showed strong growth, the worryingly steep rises of 2014 (16.3%) have settled down to a more stable level. Indeed, the story across much of Europe reflects the experience of Spain—steady growth at sustainable levels.
In Marbella it has been noticeable that the top-end of the real estate sector has been leading the market for several years now. Luxury villas for sale in the best parts of Marbella remain in great demand, as do spacious apartments, particularly with sea views. These properties can be viewed as excellent investments, both as second homes and principle residences. For more information please contact us for a consultation.