Figures from Barcelona based real estate agency Lucas Fox shows the number of transactions is increasing across all its regions as the gap between asking and sales prices continues to narrow.
International clients account for around 90% of all Lucas Fox sales, with interest from Far East and Middle East investors continuing to gain momentum. Following a slight dip in numbers over the past few years, Northern Europeans have returned in to the market, thanks to low prices and attractive investment opportunities.
The firm reports that in Barcelona there has been a steady upswing in sales in the first two quarters of 2014 compared to the same period last year. Northern Europe and UK buyers are still dominant but with increased interest from non-European investors, particularly from the Middle East and Far East
The Lucas Fox Barcelona office is currently generating approximately 30 offers per month, with approximately two out of every three being converted into sales and prime property sales price averages ended the second quarter of 2014 on €4,237 per square meter, slightly up on 2013
‘The Barcelona market has continued to improve in the first two quarters of 2014 and there is a great deal more confidence amongst buyers, in particular international buyers,’ said Lucas Fox cofounder Alexander Vaughan.
‘It looks like prices have now stabilised and the number of transactions is slowly increasing. The big change is that sellers are being more realistic and that asking prices have come down in line with buyer expectations,’ he added.
It also reports that the Ibiza residential market is continuing to perform strongly, with an increased number of transactions compared to the same time in 2013 and prices of premium properties in some prime areas are beginning to increase as demand outstrips supply.
Interest in prime market properties on Ibiza primarily comes from the UK and northern European buyers, however, interest from US buyers has doubled in the past year
‘The continued appeal of Ibiza is most definitely its unique lifestyle. More people are choosing to relocate to the island due to good schools, including international schools, outstanding properties and the exceptional quality of life,’ explained Amanda Marti, director of Lucas Fox Ibiza.
‘The island now offers 4G internet and better flight connections year round. Interest from Europeans is still high but demand has significantly increased from the Asian market, mainly Korean and Chinese buyers. There has also been a rise in interest from American investors,’ she added.
On the Costa Brava there has been significantly more movement in the property market in the opening two quarters of 2014 compared with the same period at any time since before the beginning of the crisis in 2006/2007, the report says, with most buyers being lifestyle investors taking advantage of market conditions and purchasing second homes with a medium to long-term view on the market.
Northern European buyers continue to dominate in this region and the firm has seen a drop in the number of Russian and Ukranian investors in the last six months, possibly due to the devaluation of the Rouble but there are signs that these investors are returning to the market.
‘The recovery continues to gain traction in the Costa Brava with an increase in sales activity over the same period in 2013. The market is still almost exclusively driven by international investment, predominantly private investors from northern and eastern Europe attracted by the increasingly competitive property prices in prime coastal areas, said Tom Maidment, director of Lucas Fox Costa Brava.
With prices down to by up to 50% since the peak in 2007 in Marbella, the firm believes that there are some attractive opportunities around as the gap between sales and asking prices narrows.
British clients still remain the biggest group of buyers in the Marbella region, along with Scandinavians, Northern Europeans and Russians. There has also been a significant rise in interest from US investors.
The report points out that many projects which were in the hands of the banks have now been purchased by investment funds at significantly discounted prices and will be released back onto the market over the next six to 18 months
‘The positive trend of steadily increasing numbers of property transactions that started in the latter part of 2012 has continued during the first half of 2014. Most of the transactions are still focused on prime locations such as near to Marbella, Puerto Banús and close to the beach, explained Stephen Lahiri, director of Lucas Fox Marbella.
While in Mallorca property sales are up compared to the same period last year, with sellers more open to negotiate asking prices. UK buyers continue to dominate, along with German, Dutch, Swiss and Scandinavian investors. There's also been a rise in interest from South American buyers.
The firm also reports that there is currently more demand for commercial property, with many investors searching for boutique hotel projects in Palma but also in Sóller, Pollensa and Artà.
There is an increase in demand for small country houses, according to Rafael Calparsoro, director of Lucas Fox Mallorca. ‘Many buyers and investors purchase property with the intention of renting their detached country houses in the holiday rental market. Summer villas in developed areas in South West Mallorca are also selling well: mostly between €1.5 million and €2.5 million,’ he said.
