Spanish property prices up 2.65% in first quarter of 2015
There is more good news for the Spanish property market with the latest data from the Property Registrar’s Association showing that prices increased by 2.65% in the first quarter of 2015.
The PRA data also shows that residential home sales increased 9.05% to 90,534 transactions compared to the same period in 2014. The rise in sales was largely due to robust growth in the resale market, with 67,864 transactions.
Quarter on quarter the price for resale sale properties increased by 1.88% but since the peak of the market property prices are still down 31%, according to the registrars’ data.
‘The quarterly figures are the highest in the last eight quarters, showing a clear change of tendency in the market that began in previous quarters,’ the PRA report said.
It also pointed out that it is the second highest quarter for sales in the three years and the third highest in the last four years.
It is also proving to be a popular time for buying in Spain and the weak euro is encouraging British buyers back into the market. According to estate agency HomeEspana there has been a rise in interest from British people looking to retire to the Costa Blanca.
The favourable exchange rate means that in middle of May 2015 a €100,000 property in the Costa Blanca costs a UK buyer approximately £10,000 less than it did the same time in 2014. For expats receiving an income or pension from the UK, a stronger Pound increases their spending power in euros.
‘Since the start of the year, we've seen a definite uplift in British buyers, in particular those moving out here, compared to 2014, and many decide to buy during their first visit here,’ said Kieran Byrne, managing director of HomeEspaña.
‘The exchange rate is helping, but there is also a feeling that house prices have bottomed out, as revealed by recent statistics from both TINSA and Spain's Registrars that show prices have risen in coastal areas and larger cities since the start of the year,’ he explained.
One couple who found their retirement home with the help of HomeEspaña during their first trip to the Costa Blanca are Stuart and Jennifer Flairclough from Kent who completed on a three bedroom townhouse at the end of March 2015.
The couple plan to make the €143,315 property which overlooks the fairways at Villamartin Golf and also has views of the Mediterranean. ‘It will be our permanent home and because of its size, we'll be able to accommodate our family and friends when they come over to visit,’ said Jennifer Fairclough.
‘We'd been researching the possibility of buying a retirement home in Spain for 12 or so months. Although we've travelled extensively in Spain, we only knew the Costa Blanca area from internet research,’ she explained.
The Faircloughs didn't need much convincing the Costa Blanca was the place for them and they found and secured their townhouse during their first trip there. ‘We viewed the property with HomeEspaña during a fact finding visit in early February 2015. We viewed the property twice on the same day, fell in love with it and decided to make an offer there and then, which was accepted,’ she added.
Another couple, John and Vicki Lang from Chesterfield found their Spanish home at Christmas 2014 when they arrived to get an idea of what they might buy at a later date. ‘We've had a holiday apartment in the Costa Blanca for eight years, but as we were going to live here, we were looking for somewhere bigger. We saw a couple of properties with HomeEspaña during our visit, one of which was perfect, so we thought why wait another couple of years, let's just go for it,’ said Vicki.
The Langs completed on their two bedroom villa in the Los Balcones area of Torrevieja at the end of April 2015, when they also moved in to the €160,000 property which has a large garden with orange trees and private pool.
‘Our villa is only a 15 minute walk from our apartment in Los Altos, but it's in a more residential area. It means though that we already have lots of friends close by, people we've met from coming here for holidays over the years. We're expecting lots of visits from friends and family and our daughter and grandchildren have already booked to come out this summer,’ added Vicki.