|August 6, 2015||No Comments|
This short article will provide you with a quick overview of the current health of the Spanish Real Estate Market.
This short article will provide you with a quick overview of the current health of the Spanish Real Estate Market. The graph that is included shows the movements in Spanish house prices over the last seven years. Let’s go straight to the numbers!
In Barcelona, just 54% of the properties for sale costs less than €254,000, whilst in Madrid 61% of the properties for sale cost less than €247,000, the two most expensive cities in Spain. In cities like Alicante, on the Costa Blanca, 58% of the houses have a price below €143,000.
Since six years, the residential real estate prices are increasing quickly in Spain. In fact, there are many reasons which explain the strengthening of the house market: the boost of the mortgage lending (more 19,7% in one year), the price per square meters (up 5.9% from a year ago) and the increase of the luxury market in some Spain’s cities (for example the prices in Madrid went up 4.9% from a year ago).
In recent years, the house market is boosted by the foreign buyers who became important driver of sales. In fact, the transactions by the international buyers living in Spain had an increase of 17.2% in one year. The non-residential buyers have also an important place on this market with 10.2% up from a year ago. In total, both represent around 17% of sales in Spain and especially in Alicante, Malaga, Barcelona, Tenerife and Madrid.
The Top 3 of foreign buyers who boost Spanish real estate market are British buyers (representing 13.8 % of the foreign market), followed by the French (10.5 %) and the Russians (8.4 %).
To conclude, the Real Estates Market in Spain are expending driven by foreign buyers and by the luxury market. The prices are in comparison of last years still a lot lower, therefore it is still a good time to buy properties in Spain. The overall prices are expected to increase even more over the years.