Spain is seeing a spectacular turnaround in its higher end property market
A renewed confidence amongst buyers, low prices and the Spanish banks’ willingness to offer competitive mortgages is attracting increasing numbers of new buyers in the country, according to a new analysis.
In Spain’s major cities, international buyers are now beginning to compete against local buyers to secure the best properties in prime locations, according to the report from Lucas Fox covering the first six months of 2015.
Indeed, Spain is seeing a ‘spectacular’ turnaround in its property market, according to the firm’s founding partner Alexander Vaughan.
The report says that Barcelona is expected to be the most significant year of recovery for the prime residential property market in the past seven years. Prices have stabilised in the past 12 to 18 months, and international interest for turnkey properties is forcing up demand, alongside renewed confidence amongst local buyers.
In Maresme, whereas in previous years local buyers accounted for as little as 20% of Lucas Fox’s sales enquiries, this figure is now closer to 50% and there has been a substantial increase in the number of sales transactions to local clients.
The report also says that on the Costa Brava, sales in the first half of the year have been dominated by Northern European buyers with British, French, Swiss, Dutch and Scandinavian buyers being the most active.
On Ibiza, while national averages of property prices continued to decline slightly throughout 2014 and are levelling off in 2015, average prices in Ibiza have seen increases since the start of 2013.
In Marbella, sales have increased across the region, leading to a shortage of good quality properties in prime locations. Turnkey projects are selling so fast that Lucas Fox is seeing regular price increases of new off plan properties coming onto the market while in Valencia, the first quarter of 2015 has seen an increase of 14% for property re-sales.
Madrid continues to attract more and more investment from both national and international investors. Lucas Fox data suggests that 60% of clients buy for investment purposes and 20% for the so called golden visa that allows non-European Union citizens to live in the country if they invest in real estate.