Foreign buyers pushing up sales in coastal areas of Spain, new research suggests

New data from the Spanish registrars suggests that Almeria on the south east coast of Spain is the country’s new property hotspot for British buyers as sales to all foreigners increase.

An analysis of the sales figures by Spanish real estate portal Kyero along with its own research shows it is racing ahead of other regions when it comes to sales.

According to the firm’s head of research Richard Speigal British buyers are increasingly focused on value for money since the vote to leave the European Union and Almeria offers what they are looking for.

On a quarterly basis, property sales in Almeria are up by 93% when compared with the third quarter of 2015, according to the registrars’ figures. With the rest of Spain growing modestly, Almeria stands out as enjoying a significant boom.

Almeria is in Andalusia on Spain’s Mediterranean coastline and while other locations popular with British buyers and expats were focussed on high rise developments in the late 1960s, to cram in as many tourists as possible, Almeria remained largely untouched.

Speigal believes that it means that those looking for a more authentic Spain can find property in the coastal towns of Almeria with a charm that their more developed neighbours have lost for good.

‘Almeria offers exceptional value for money. Property here costs a fraction of what it does in the neighbouring Costas. Our coastal towns remain full of charm and character and just a 15 minute drive away you can find yourself in wonderful countryside. This lifestyle is sought by a new influx of foreign buyers including French, Dutch and Germans,’ said Sharon Garner, sales director for Almeria based Spanish Property Choice.

She explained that despite Brexit there is still as steady flow of British buyers searching for a Spanish lifestyle. ‘We’ve seen a sharp rise in sales and long term lets, both of which have superseded our expectations for the year,’ she added.

Spanish Property Choice, which has had to expand its staff team twice already during 2016 to cope with increased buyer demand, says buyers are 45 to 60 years old and looking for a second home in the sunshine, with early retirees joined by those looking to bring up their family in a safe, healthy environment.

According to Speigal there used to be a fairly well established pattern of British buyers working until their retirement and then spending their savings on a home in the sunshine but modern ways of working and shifting values among the younger generation are having a significant impact on that approach.

‘Many people struggle to buy UK property well into their 30s, if not their 40s these days. With remote working an option and property prices in Spain so reasonable and particularly so in Almeria where the average property costs just €129,000, the appeal of moving overseas to raise a family has never been stronger,’ he said.

By way of comparison, the average property in Alicante costs €210,000, while the average home in Malaga costs €295,000.

The growth in sales is reflected overall in the Spanish market with the register figures showing that transactions recorded in September were up 12% compared to the same month in 2015. Sales have now grown almost every month since March 2014.

Sales were down in some of the Costas which buyers in Almeria might be trying to avoid. Transactions were down in Malaga, home to the Costa del Sol, which probably reflects a decline in British demand below average in Alicante on the Costa Blanca, another region that has been popular with British buyers.

Meanwhile, a new from CaixaBank says the real estate recovery is getting stronger and is led by coastal regions with demand from foreign buyers playing a major part.

Foreigners buying second homes lie behind a large proportion of the sales recorded on the Mediterranean coast and Canary Islands. Overseas buyers made up 30% of sales in the Balearic Islands, the Canary Islands, Malaga and Murcia, the bank figures show.

All the provinces where the housing market grew more than 10% in the second quarter of 2016 were on the Mediterranean coast or the islands.